*

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

*

Trump says Iran and Israel agree to ceasefire

*

Wall St futures rise, Nikkei up 1.3%

*

Dollar extends pullback, Treasury yields inch up

(Adds China open, fresh quotes from analysts)

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".

There was no immediate comment yet from Israel. While an

Iranian official earlier confirmed that Tehran had agreed to a

ceasefire, the country's foreign minister said there would be no

cessation of hostilities unless Israel stopped its attacks.

Oil prices fell over 3%, 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 $66.15 per barrel, the lowest since June 11.

"With markets now viewing the escalation risk as over,

market attention is likely to shift towards the looming tariff

deadline in two weeks time," said Prashant Newnaha, senior

Asia-Pacific rates strategist at TD Securities.

"Our sense is that the quicker than expected resolution

to the Middle East conflict leads to expectations for a swifter

resolution on tariffs and trade deals."

Risk assets rallied, with S&P 500 futures up 0.6% and

Nasdaq futures 0.9% higher. EUROSTOXX 50 futures

jumped 1.3% and FTSE futures rose 0.4%.

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

Japan jumped 1.8% while Japan's Nikkei

rallied 1.4%.

Two sources told Reuters that Japan's tariff negotiator

Ryosei Akazawa is arranging his seventh visit to the United

States for as early as June 26, aiming to end tariffs that are

hurting Japan's economy.

China's blue chips rose 1%, while Hong Kong's Hang

Seng index gained 1.7%.

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.

"The market was so well hedged against a major tail-risk

event to play out...the actions and the dialogue we've seen

highlight that the tail risks have not and will highly unlikely

materialise," said Chris Weston, head of Research at

Pepperstone.

Ten-year Treasury yields were 2 basis points

higher at 4.35%, having declined 5 bps overnight 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.