* Futures up: Dow 2.48%, S&P 500 2.36%, Nasdaq 2.4%

* Russell 2000 futures gain 3.9%

* CBOE Volatility Index falls after hitting two-week high

earlier

(Updates prices, comment)

By Purvi Agarwal and Twesha Dikshit

Mar 23 (Reuters) - Wall Street futures jumped more than

2% on Monday, reversing losses after Donald Trump said he would

order the military to postpone strikes against Iranian power

plants and energy infrastructure following "productive

conversations" with Tehran.

Global markets staged a sharp recovery after the U.S.

president's comments, with Europe's STOXX 600 and

precious metals turning positive, while oil prices fell, marking

a significant improvement in risk appetite.

Markets had been trading lower after Iran's statement that

it would attack Israel's power plants and plants supplying U.S.

bases in the Gulf if Trump carried out his threat to

"obliterate" Iran's power network, the country's Revolutionary

Guards said.

"This is obviously a postponement, not a complete ceasefire,

and we will see what happens from here. What's done is still not

undone, so the impact has yet to be seen, but obviously, markets

are breathing a sigh of relief," said Chris Beauchamp, chief

market analyst at IG Markets.

At 07:17 a.m. ET, Dow E-minis were up 1,140 points,

or 2.48%, S&P 500 E-minis rose 154.75 points, or 2.36%,

and Nasdaq 100 E-minis added 578.75 points, or 2.4%.

The CBOE Volatility Index - Wall Street's fear gauge

- fell after hitting its highest level in two weeks earlier -

and was last down 3.99 points at 22.79.

Wall Street's main indexes logged their fourth week of

declines on Friday, with the Nasdaq posting its biggest weekly

drop since early February.

Futures tracking the Russell 2000 index rose 4.7%,

after being down more than 1% earlier. The small-cap index

, sensitive to higher interest rates, ended more than 10%

below its record close of January 22 on Friday, confirming it

had been in correction territory.