* European stocks jump 1.5%; U.S. futures rise

* Trump comments on peace deal and AI hype lift markets

* MSCI World Index hits all-time high

* Yen surges to 155 as intervention talk swirls

(Updates for European session)

By Gregor Stuart Hunter and Harry Robertson

SINGAPORE/LONDON, May 6 (Reuters) - Stocks leapt as oil

prices dropped on Wednesday after U.S. President Donald Trump

touted the "great progress" that has been made towards a peace

agreement with Tehran, while momentum in AI-driven trades

accelerated.

Trump said he would briefly pause an operation dubbed

Project Freedom escorting ships through the Strait of Hormuz,

which carries about a fifth of the world's oil and liquefied

natural gas; it has been blockaded by Iran since late February,

triggering a global energy crisis.

Brent crude, the global benchmark, fell 3.2% to

$106.40 per barrel. That helped stocks to push higher after a

rally on Tuesday.

Europe's STOXX 600 index jumped 1.5% in morning

trading after climbing 0.7% a day earlier. MSCI's All-Country

World Index climbed 0.7% to a fresh record.

Meanwhile, futures for the S&P 500 rose 0.3%, a day

after the index rallied 0.8% to hit its latest record

high, driven by strong company earnings and excitement about

artificial intelligence.

"It seems equity investors are still looking to put money to

work and are jumping on positive-sounding news from the Gulf,"

said Chris Turner, head of global markets at ING.

"The prospect of a permanent peace deal remains highly

uncertain, however, and oil looks set to remain very volatile."

Although stocks have rallied sharply in recent weeks, oil

and bond markets are pointing to a potentially large impact on

the global economy from the conflict.

Oil prices remain almost 50% higher than when the conflict

began in late February. Yields on 10-year U.S. Treasuries

, which set the tone for borrowing costs around the

world, have risen around 40 basis points.

AI RALLY DRIVES ASIAN STOCKS HIGHER

The broadest index of Asia-Pacific shares outside Japan

jumped 2.9%. The surge was led by a 6.5% charge

for South Korea's KOSPI, which reopened after a holiday.

Samsung Electronics ( SSNLF ) jumped 14%, topping a $1

trillion market value and overtaking Berkshire Hathaway ( BRK/A )

.

"Due to the capex spend we are seeing from (AI) hyperscalers

in the U.S., the earnings growth trajectory for sectors such as

semiconductors, tech hardware, industrials and materials in Asia

exceeds anything I have seen in a long time," said Rushil

Khanna, head of equity investments for Asia at Ostrum, an

affiliate of Natixis Investment Managers.

In the U.S., shares in chipmaker Advanced Micro Devices ( AMD )

jumped 16% in extended trading as the company forecast

second-quarter revenue above Wall Street expectations on

Tuesday, helping drive AI enthusiasm across markets.

In foreign exchange markets, the yen strengthened

sharply in afternoon trading, gaining as much as 1.8% to 155

against the dollar as traders remained on the lookout for fresh

intervention by authorities in Tokyo in support of the

beleaguered currency.

"There's a bit of optimism around a U.S.-Iran 'deal' at the

moment; it's possible the authorities decided that was a good

moment to give the yen an extra nudge," said Thomas Mathews,

head of markets for Asia Pacific at Capital Economics in

Wellington.

"That said, it might just be thin holiday-affected trade;

best to wait and see how it fares towards the end of the week."

The U.S. dollar, which has been a safe haven during

the Iran war, fell 0.3% against its major peers, reflecting

investor hopes about a possible deal.

Meanwhile, yields on government bonds fell along with oil

prices as traders dialled down their bets on central bank rate

hikes.

The key 10-year U.S. Treasury yield fell 5 basis points to

4.37%.