* Trump's Iran comments ease oil shock fears

* Iranian media disputes Trump's negotiation claims

* Stocks rebound from four-month low after Trump's

announcement

(Updated in early New York afternoon time)

By Karen Brettell and Dhara Ranasinghe

NEW YORK, March 23 (Reuters) - Global stocks rebounded

from a four-month low on Monday after U.S. President Donald

Trump announced he would order the military to postpone any

strikes against Iranian power plants and energy infrastructure,

easing fears over the repercussions of a deeper oil shock.

Trump also said the U.S. was in talks with Tehran about ending

the U.S.-Israeli war on Iran, however parliamentary Speaker

Mohammad Baqer Qalibaf, mooted to be the leader representing

Iran in contacts with the U.S., posted on social media that no

talks had been held with the U.S.

Oil prices tumbled by more than 8%, the dollar fell against

other major currencies and government borrowing costs eased.

"It (the comments) buys time. We are in a very intense

conflict... maybe they need some more time to prepare whatever

they're staging to do. I don't see this conflict going back in

the bottle overnight," said David Bianco, Americas chief

investment officer at DWS.

IRANIAN MEDIA CONTRADICT TRUMP'S COMMENTS

U.S. crude was last down 8.78% to $89.61 a barrel and

Brent fell to $101.42 per barrel, down 9.64% on the day.

The Dow Jones Industrial Average rose 655.41 points,

or 1.44%, to 46,232.88, the S&P 500 rose 77.50 points,

or 1.19%, to 6,583.98 and the Nasdaq Composite

rose 273.61 points, or 1.26%, to 21,921.22.

MSCI's gauge of stocks across the globe

rose 4.77 points, or 0.49%, to 986.08. The pan-European STOXX

600 index rose 0.61%.

INVESTORS TRIM RATE HIKE EXPECTATIONS

Britain's 2-year bond yield, which has borne the brunt of a

bond selloff since the start of the conflict, was last down 17

basis points on the day at 4.409%. The 10-year yield dropped

from its highest since 2008.

Investors trimmed their bets on Bank of England rate hikes,

now pricing in two hikes by year-end versus more than three

earlier on Monday, while they also cut expectations for the

European Central Bank.

In the U.S., two-year and 10-year Treasury yields were 2 to

3 basis points lower, with the 10-year yield last at 4.36%.

The dollar was broadly soft, having traded higher against

most other currencies until the headline hit. The euro

was last up 0.23% at $1.1597.

"(The market) is not saying that the worst is over, but that the

odds that the worst will manifest itself in the next couple of

days have gone down," said Steven Englander, head of global G10

FX research and North America macro strategy at Standard

Chartered in New York.

(Additional reporting by Laura Matthews, Dhara Ranasinghe,

Yoruk Bahceli, Lucy Raitano and Purvi Agarwal; Editing by Amanda

Cooper, Elisa Martinuzzi and Alex Richardson)