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Asian stock markets : https://tmsnrt.rs/2zpUAr4

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Trump says Iran and Israel agree to ceasefire

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Wall St futures rise, Nikkei up 1.3%

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Dollar extends pullback, Treasury yields inch up

(Updates with market open in Asia, adds confirmation from Iran,

media report from Israel)

By Wayne Cole and Stella Qiu

SYDNEY, June 24 (Reuters) - Global shares rallied and

the dollar extended declines on Tuesday after U.S. President

Donald Trump said Iran and Israel had agreed to a ceasefire,

sending oil prices into a deep dive as concerns over supply

disruptions ebbed.

Writing on his Truth Social site, Trump implied a ceasefire

would go into effect in 12 hours, after which the war would be

considered "ended".

A senior Iranian official confirmed Tehran had agreed to the

ceasefire with Israel. Israel's Channel 12 reported Prime

Minister Benjamin Netanyahu had agreed in a conversation with

Trump to a ceasefire as long as Iran stopped its attacks.

Oil prices fell almost 4%, having already slid 9% on Monday

when Iran made a token retaliation against a U.S. base, which

came to nothing and signalled it was done for now.

With the immediate threat to the vital Strait of Hormuz

shipping lane seemingly over, U.S. crude futures fell

another 3.4% to $66.24 per barrel, the lowest since June 11.

"To the extent that we've got a reduction in the risk of a

renewed oil price spike, I think that plays positively from a

risk point of view. I think it sort of removes that downside

global growth risks," said Ray Attrill, head of FX strategy at

the National Australia Bank.

"I think that would encourage people in the view that maybe

the U.S. dollar can sort of resume its downtrend here and that."

Risk assets rallied, with S&P 500 futures up 0.5% and

Nasdaq futures 0.7% higher. EUROSTOXX 50 futures

jumped 1.1% and FTSE futures rose 0.3%.

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

Japan gained 0.8% while Japan's Nikkei

rallied 1.3%.

News of the ceasefire saw the dollar extend an overnight

retreat and slip 0.3% to 145.70 yen, having come off a

six-week high of 148 yen overnight. The euro rose 0.2%

to $1.1594 on Tuesday, having gained 0.5% overnight.

The yen and euro benefited from the slide in oil prices

as both the EU and Japan rely heavily on imports of oil and

liquefied natural gas, while the United States is a net

exporter.

Against its major peers, the U.S. dollar index

slumped 0.6% overnight and was last unchanged at 98.20.

Ten-year Treasury yields rose 1 basis

point to 4.353%, while interest rate futures slipped as

investors rowed back a little on expectations for rate cuts.

The Treasury market had rallied on Monday after Federal

Reserve Vice Chair for Supervision Michelle Bowman said the time

to cut interest rates was getting nearer as risks to the job

market may be on the rise.

Fed Chair Jerome Powell will have his own chance to comment

when appearing before Congress later on Tuesday and, so far, has

been more cautious about a near-term easing.

Markets still only imply around a 22% chance the Fed will

cut at its next meeting on July 30.

The risk-on mood saw gold prices ease 0.6% to $3,346 an

ounce.