(New throughout, updates with U.S. market open, adds analyst

comment)

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Trump says Iran and Israel agree to ceasefire

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Brent crude futures down nearly 10% in two days

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Wall Street shares gain, European and Asia stocks rally

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US yields fall, German draft budget sends Bund yields

higher

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Dollar extends pullback, gold softens

By Chibuike Oguh

NEW YORK, June 24 (Reuters) - Global shares were on

track for a second straight day of gains on Tuesday with oil

prices plummeting further as market sentiment was lifted by the

easing of Middle East tensions, after Israel and Iran agreed to

a ceasefire.

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.

On Wall Street, the three main indexes were trading higher,

with the biggest gains in financials, technology, communication

services, and consumer discretionary stocks. Energy shares were

the main drag.

European shares were up 1%, while MSCI's broadest

index of Asia-Pacific shares outside Japan

jumped 2.4% overnight. MSCI's gauge of stocks across the globe

rose 1.11% to 899.97, trading near a record

high reached on June 11.

"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 were down 4.87% at $67.99 a

barrel. U.S. West Texas Intermediate crude fell 4.89% to

$65.17. 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 1.07% to 144.57 against the Japanese yen

and dropped 0.97% to 0.805 against the Swiss franc

. The euro was up 0.45% at $1.1628.

The dollar index, which measures the greenback

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

fell 0.45% to 97.80.

Federal Reserve Chair Jerome Powell said the central bank needs

more time to see if rising tariffs drive inflation higher before

considering interest rate cuts. Powell spoke in testimony

prepared for delivery on Tuesday at a hearing before the House

Financial Services Committee.

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

fell 1.6 basis points to 4.306%. The 2-year note

yield, which typically moves in step with interest

rate expectations for the Federal Reserve, fell 1 basis point

to 3.819%.

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 2.4 basis points

to 2.53%.

Gold prices fell. Spot gold fell 1.8% to $3,307.87 an

ounce. U.S. gold futures fell 2.27% to $3,301.00 an

ounce.