*

Wall Street shares rally more than 1%

*

Iran and Israel ceasefire appears to hold

*

Brent crude futures settle down 6%

*

US yields fall, German draft budget sends Bund yields

higher

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Dollar extends pullback, gold softens

(Updates headline and prices throughout with U.S. market close,

adds oil and gold settlement)

By Chibuike Oguh

NEW YORK, June 24 (Reuters) - An index of global shares

hit a record high on Tuesday with oil prices plummeting further

as market sentiment was lifted by the easing of Middle East

tensions, after a shaky ceasefire between Israel and Iran began

to take hold.

U.S. President Donald Trump had announced on Monday that Israel

and Iran had reached a ceasefire to end their 12-day-old war.

But both sides accused each other of violating the truce on

Tuesday, sparking an extraordinary outburst from Trump.

Wall Street's main indexes rallied more than 1%, with the

benchmark S&P 500 finishing near a record high reached on

February 19. The biggest gainers were in financials, technology,

communication services, and healthcare stocks. Energy and

consumer staples shares were the main drag.

The Nasdaq 100 notched a record high close for the

first time since February.

The Dow Jones Industrial Average rose 1.19%

to 43,089.02, the S&P 500 rose 1.11% to 6,092.18 and the

Nasdaq Composite rose 1.43% to 19,912.53.

European shares finished up 1.11%, hitting a

one-week high during the session and notching its biggest

single-day jump in over a month.

MSCI's broadest index of Asia-Pacific shares outside Japan

jumped 2.4% overnight, closing at its highest

level since January 2022. MSCI's gauge of stocks across the

globe rose 1.45% to 902.88, hitting its highest

level on record.

"Markets are cheering what is looking to be a ceasefire

between Iran and Israel, which means no major impact to supply

of oil to global markets," said Talley Leger, chief market

strategist at the Wealth Consulting Group. "Risk assets,

including equities in general and cyclical pro-economy sectors

of the market more specifically, have been rallying. Defensives

and safe-haven assets have also been ebbing, which is consistent

with what we've been saying and what we know historically."

Brent Crude futures settled down 6.1% to $67.14 a

barrel. U.S. West Texas Intermediate (WTI) crude

fell 6.0% to settle at $64.37. Both contracts had settled down

more than 7% in the previous session, having rallied to

five-month highs after the U.S. attacked Iran's nuclear

facilities over the weekend.

The U.S. dollar declined against major currencies including

safe-haven Japanese yen and Swiss franc following the truce. The

euro gained.

The dollar weakened 0.88% to 144.80 against the Japanese yen

and dropped 0.90% to 0.80515 against the Swiss franc

. The euro was up 0.27% at $1.16125.

The dollar index, which measures the greenback

against a basket of currencies including the yen and the euro,

fell 0.30% to 97.94.

Federal Reserve Chair Jerome Powell said higher tariffs

could begin raising inflation this summer, a period that will be

key to Fed considering possible 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 labor market

conditions.

The yield on benchmark U.S. 10-year notes

fell 3 basis points to 4.293%. The 2-year note yield,

which typically moves in step with interest rate expectations

for the Federal Reserve, fell 1.2 basis point to 3.817%.

Germany's long-term government bond yields rose after the

cabinet passed a draft budget for 2025. The yield on the

benchmark German 10-year Bunds rose 0.9 basis points

to 2.543%.

Gold prices fell. Spot gold fell 1.34% to $3,323.49

an ounce. U.S. gold futures settled 1.5% lower at

$3,298.40.