*

Crude oil hovers near multi-week lows as supply worries

recede

*

Regional stocks flat after relief rally on Wall Street

overnight

*

Ceasefire fragile with Israel vowing response to Iran

missiles

By Kevin Buckland

TOKYO, June 25 (Reuters) - Asian stocks stabilised on

Wednesday as crude oil hovered near multi-week lows as a

ceasefire between Israel and Iran buoyed sentiment, even as

hostilities threatened to flare up again.

The dollar wallowed close to an almost four-year trough

versus the euro with two-year U.S. Treasury yields sagging to 1

1/2-month lows as lower oil prices reduced the risk to bonds

from an inflation shock.

The shaky truce has so far held, although Israel says it

will respond forcefully to Iranian missile strikes that came

after U.S. President Donald Trump had announced an end to the

hostilities.

In addition, U.S. airstrikes did not destroy Iran's nuclear

capability and only set it back by a few months, according to a

preliminary U.S. intelligence assessment, contradicting Trump's

earlier comments that Iran's nuclear programme had been

"obliterated".

Japan's Nikkei and Australia's stock benchmark

were flat, while Taiwan's index gained 1%.

Hong Kong's Hang Seng rose 0.6% and mainland Chinese

blue chips eased 0.1%.

U.S. stock futures were little changed.

An MSCI index of global stocks held steady

after climbing to a record high overnight.

Brent crude ticked up 81 cents to $67.95 per barrel,

bouncing a bit following a plunge of as much as $14.58 over the

previous two sessions. U.S. West Texas Intermediate crude

added 70 cents to $65.07 per barrel.

"Despite the cease fire between Israel and Iran appearing

somewhat tenuous, the markets are shrugging it off," said Kyle

Rodda, senior financial markets analyst at Capital.com.

"Realistically, the markets don't care if a limited conflict

comprised of mostly air strikes continues between the two

countries," he said. "It's the prospect of a broader war, with

deeper US intervention and an Iranian blockade of the Strait of

Hormuz that really matters. And for now, the risks of that seem

low."

The two-year U.S. Treasury yield dipped to the

lowest since May 8 at 3.787%.

The U.S. dollar index, which measures the currency

against six major counterparts, slipped 0.1% to 97.854.

The dollar slipped 0.1% to 144.70 yen.

The euro added 0.1% to $1.1625, edging back

towards the overnight high of $1.1641, a level not seen since

October 2021.

Federal Reserve Chair Jerome Powell said on Tuesday that

higher tariffs could begin raising inflation this summer, a

period that will be key to the U.S. central bank considering

possible interest rate cuts. Powell spoke at a hearing before

the House Financial Services Committee.

Data showed that U.S. consumer confidence unexpectedly

deteriorated in June, signalling softening labour market

conditions.

Markets continue to price in a roughly 18% chance that the

Fed will cut rates in July, according to the CME FedWatch tool.