(Updates prices throughout, adds analyst comments)

* Wall Street stocks gain

* Stocks rise in Europe and Asia

* Crude prices fall, gold rises

* Dollar gains against euro and yen

By Chibuike Oguh and Elizabeth Howcroft

NEW YORK/LONDON, March 25 (Reuters) - Global equity

markets rose while oil prices fell on Wednesday, as traders

welcomed news of discussions to de-escalate the ongoing conflict

in the Middle East.

The U.S. sent a 15-point ceasefire proposal to Iran reportedly

delivered via Pakistan that was originally brushed aside by

Iranian officials. But an Iranian official told Reuters that the

country is still reviewing the offer, suggesting Tehran had not

rejected the idea outright.

Markets have been whipsawed by the unclear signals sent by the

White House in recent days, with President Donald Trump making

overtures towards de-escalation even as the U.S. sends thousands

of additional troops to the Middle East. Investors are hoping

for an end to a war that has disrupted global energy supplies

and risks fuelling inflation.

Oil prices, which have risen sharply since the joint

U.S.-Israeli strikes on Iran, eased slightly. Brent crude

futures pared some earlier losses, but were still down

2.35% at $102.03 a barrel while U.S. West Texas Intermediate

crude futures fell 2.4% to $90.10 a barrel.

"The faster we get a resolution the better," said Mark

Hackett, chief market strategist at Nationwide Financial in

Philadelphia. "That said, there is some negotiating in public

involved, and the market is susceptible to whipsaws around the

news cycle."

On Wall Street, the Dow Jones Industrial Average rose

0.8%, the S&P 500 rose 0.7% and the Nasdaq Composite

rose 0.9%.

In Europe, the STOXX 600 index and London's FTSE

100 both rose 1.42%.

"The mood is on the positive side," said Amelie

Derambure, senior multi-asset manager at Amundi. "(The) market

is trading now the idea that peace talks or a ceasefire could be

on the way."

Derambure said traders were positioning themselves to avoid

missing a possible "relief rally," when markets rise on positive

news, although she added that more convincing news will be

needed for the move to be sustained.

MSCI's gauge of stocks across the globe rose

0.9%.

Overnight, MSCI's broadest index of Asia-Pacific shares

outside Japan closed up 1.8%.

BOND YIELDS FALL

Iran has said that "non-hostile vessels" may cross the Strait of

Hormuz if they coordinate with Iranian authorities, but the

waterway, which typically carries about one-fifth of the world's

gas and crude supply, remains effectively closed.

U.S. bond yields were lower across the board. The yield on

benchmark U.S. 10-year notes fell 7 basis points to

4.32%.

European government bond yields also fell, led by Italian bonds,

which have been particularly hard-hit since the war started due

to Italy's dependence on fossil fuel imports.

The benchmark 10-year German yield fell 5.1 basis points to

2.96%.

The U.S. dollar gained against its peers including the

Japanese yen, Swiss franc and the euro.

The euro fell 0.2% to $1.1579. The Japanese yen

weakened 0.3% against the greenback to 159.26 per dollar.

The Swiss franc was down 0.3% to 0.791 against the

dollar.

The dollar index, which measures the greenback

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

rose 0.3% to 99.49.

Spot gold prices rose 1.8% to $4,554.85 an ounce.