(Updates prices, add details)

* Brent crude remains below $80 on Iran supply hopes

* Warsh to navigate between dovish Trump and hawkish pricing

* U.S. chip stocks rebound; dollar steady

* Euro zone yields fall for a fifth day on inflation relief

By Danilo Masoni

MILAN, June 17 (Reuters) - Stocks edged up and currencies

were subdued on Wednesday ahead of Kevin Warsh's debut as

Federal Reserve chair, while oil prices remained near

three-month lows, easing inflation pressure and pushing bond

yields lower.

Brent crude fell as far as $77.75 a barrel, down more

than a third from April peaks after reports the United States

may waive sanctions on Iranian oil under a deal to end the war.

It was last up 0.4% at $79.29.

The prospect of extra supply added to optimism about the

resumption of Middle East exports that has helped push U.S.

Treasury yields lower this week, alongside a rally in global

bonds, even as the conflict has drained strategic oil reserves.

"Iran's total exports could approach around the equivalent

of 2% of global demand," said Luka Belobrajdic, an economist at

Westpac, though he cautioned any sanctions relief is unlikely to

be immediate and would depend on the durability of peace.

The International Energy Agency said the oil market will move

into a significant supply surplus in 2027 after recovering from

the closure of the Strait of Hormuz.

Cooling inflation expectations lifted euro zone government

bonds for a fifth day, their longest rally since February,

driving 10-year German yields, the bloc's benchmark,

to their lowest since early April.

British yields fell sharply after May inflation unexpectedly

held at a 13-month low of 2.8%, a day before the Bank of

England's next rate decision. U.S. Treasury yields

edged up 1.7 basis points to 4.44%, but remained about 22 bps

below their May peak.

Few details of the U.S.-Iran agreement, due to be signed on

Friday, have been publicly confirmed, and a three-month

stranglehold on the Strait of Hormuz has U.S. oil reserves at

their lowest point since 1983.

Uncertainty lingered. U.S. President Donald Trump said the

agreement reached this week was not final and that he could

resume a bombing campaign.

Falling oil prices could ease concerns about an economic

slowdown in energy-importing Europe, where stock markets have

lagged tech-heavy Wall Street indices this year.

"Lower prices could lead to a recovery in manufacturing and

consumer sentiment," wrote Deutsche Bank strategist Maximilian

Uleer, dropping his preference for U.S. stocks over Europe.

The pan-European STOXX 600 rose 0.3%, staying close

to Monday's record. Shares in BMW fell 7% after the

German automaker slashed its 2026 outlook, citing a downturn in

China and the impact of the U.S.-Israeli war on Iran.

The FTSE 100 was unchanged.

U.S. CHIP STOCKS REBOUND

Wall Street futures pointed to a bounce in tech

stocks after heavy losses among U.S. chipmakers, as volatility

resurfaced in the sector after a record-breaking run.

Shares of chipmakers including Broadcom ( AVGO ), Micron,

AMD and Intel ( INTC ) rose between 1.5% and 3.5% in

premarket trading.

SpaceX rose almost 3% after Elon Musk's AI and

rocket company surpassed Amazon's ( AMZN ) market value on

Tuesday to become the fifth most valuable company.

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

rose 0.3% and in China, AI gains offset sagging

consumer stocks in the wake of weak retail sales data.

FED ON HOLD, WARSH IN FOCUS

Traders are waiting to see how Warsh walks the line between

his dovish president and the markets, which expect a hike this

year. The anticipation has broadly held the dollar in stasis.

The euro has firmed only a little this week to hover

around $1.16. Tuesday's rate hike in Japan failed to lift the

yen, though the downside was protected by the risk of official

intervention, holding it at 160.3 to the dollar.

A change in the Fed funds rate is unlikely, so the focus is on

the press conference, Warsh's vote and committee members'

projections, which in March showed most expected to cut rates.

"I don't have either cuts or hikes on my radar in the next

12 months," said Arne Petimezas, director of research at Dutch

broker AFS Group. "If Warsh is going to hike, which is where I

think the risks are, it will be more than just one hike."

Sweden's Riksbank kept its policy rate unchanged, but forecast a

possible hike ahead.

Gold, down more than 20% from January peaks, has

bounced strongly from support at around $4,000 an ounce and was

last at $4,323. Bitcoin was down 1.6% at $64,716.