* Futures up: Dow 0.94%, S&P 500 1.29%, Nasdaq 2.2%

* Airline, cruise stocks gain as oil prices slide

* Paramount up after DOJ clears Warner Bros acquisition

* CBOE Volatility Index falls to over one-week low

(Updates with prices)

By Johann M Cherian and Twesha Dikshit

June 15 (Reuters) - Futures tracking Wall Street's main

indexes jumped on Monday after Washington and Tehran reached a

preliminary agreement to end the Iran war and reopen the crucial

Strait of Hormuz, sending oil prices tumbling to a three-month

low.

The framework for a deal, however, did not address sticking

issues such as Iran's nuclear program and the conflict between

Lebanon and Israel. The pact is expected to be formally signed

in Switzerland on Friday.

"If the overnight news of a deal between the U.S. and Iran

proves to be credible and lasting, this should be taken as a

positive, whereas setbacks will likely be taken as less of a

negative by risk assets," said Max Kettner, chief multi-asset

strategist at HSBC Global Investment Research.

Chip stocks moved higher in premarket trading. Micron

soared 8.2% after multiple brokerages raised its price target,

while Nvidia ( NVDA ) was up 2.3%, Intel ( INTC ) added 3.1% and

Marvell Technology ( MRVL ) rose 5.4%.

Crude prices tumbled more than 4% to their lowest mark since

March following the news, helping airlines and cruise stocks

that are sensitive to energy prices.

United Airlines rose 4.4%, Delta Airlines

added 4% and American Airlines ( AAL ) gained 3.5%, while

Norwegian Cruise and Carnival Corp ( CCL ) added 4.3%

and 3.6%, respectively.

Analysts warn that Brent crude prices could hover

around $80 a barrel despite the resolution as energy flows

resume through the Strait and Middle Eastern countries restore

damaged infrastructure.

Data from the previous week indicated higher energy costs

were filtering into consumer inflation, sharpening focus on the

U.S. Federal Reserve's outlook at the monetary policy meeting

later this week.

The yield on the benchmark two-year Treasury note

, reflecting rate-cut expectations, slipped 7 basis

points to a two-week low.

The CBOE Volatility Index, Wall Street's fear gauge,

slipped to a more than one-week low at 16.66, after rising to a

more than two-month high the previous week.

The Fed is expected to leave interest rates unchanged later

this week; however, traders still expect the central bank to

hike borrowing costs by at least 25 bps by the year-end,

according to the CME Group's FedWatch tool.

At 04:45 a.m. ET, Dow E-minis rose 480 points, or

0.94%, S&P 500 E-minis gained 95.75 points, or 1.29%,

and Nasdaq 100 E-minis were up 653.75 points, or 2.2%.

SpaceX's shares rose 5.6% after the Elon Musk-led

company ended its blockbuster IPO at a valuation of more than $2

trillion.

Markets were relieved by the smooth trading in SpaceX's

landmark Nasdaq launch, setting a new template for firms and

exchanges bracing for the giant IPOs of OpenAI and Anthropic

later this year.

All three indexes ended the week higher despite AI shares

being pressured early in the week. Analysts pointed to the tech

sector's sensitivity to higher interest rates and potential

positioning ahead of the SpaceX IPO as the drivers of the

selloff.

Attention will turn this week to Fed Chair Kevin Warsh's

first meeting at the helm, with investors gauging his

communication style and looking to economic and interest-rate

projections for hints on the rate path.

In other movers, Paramount Skydance's ( PSKY ) shares gained

4.7% after the U.S. Justice Department cleared the company's

acquisition of Warner Bros.