* Wall Street follows European stocks higher after Asian

markets rally

* US says peace deal could be signed this weekend, Iran

minister sees nuclear discussions later

* Investors wait for Iran-US deal details

* Record-breaking SpaceX IPO sets positive tone for markets

(Updates prices after U.S. stock market close)

By Sinéad Carew and Iain Withers

NEW YORK/LONDON June 12 (Reuters) - MSCI's global equities

index rose on Friday with Wall Street ending modestly higher as

shares of Elon Musk's SpaceX soared in their market

debut, while oil prices fell more than 3% on fresh hopes for a

peace deal between Iran and the U.S.

Stocks had rallied sharply on Thursday after U.S. President

Donald Trump called off attacks on Iran and announced the two

countries were close to a deal to end their three-month-old war.

However, details of such a deal were unclear. A senior U.S.

official said on Friday that negotiators for the U.S. and Iran

are close to the finish line of a deal that could be signed in

the coming days. The official told reporters that an agreement

would include a commitment by Iran to neither develop nor

procure nuclear weapons and would reopen the Strait of Hormuz to

normal oil traffic and lift the U.S. blockade.

But Iran's foreign minister Abbas Araqchi said that nuclear

issues will be discussed in later stages and that management of

the Strait of Hormuz would not return to the pre-war era.

Still, U.S. Treasury yields rose while stocks finished

higher after climbing back up from morning declines.

The SpaceX IPO was a bigger boost for stocks on Friday than

the prospect of an Iran deal, said Jake Dollarhide, CEO of

Longbow Asset Management in Tulsa, Oklahoma, adding that since

mid-March President Donald Trump has repeatedly said that a deal

with Iran was close.

"The market's been stung more times about peace in the past.

Yesterday was because Trump called off the attacks. That was a

tangible result. Today we're still waiting for proof of a deal,"

he said.

"The excitement about the SpaceX IPO is what's driving the

market. A healthy IPO is great for the market."

Dollarhide said it could be a productive year for IPOs with

artificial intelligence companies OpenAI and Anthropic also

expected to make their debuts this year.

In their first day of trading, shares in rocket and

spacecraft manufacturer SpaceX closed up more than 19% at

$161.11, with the market debut pushing the company's valuation

past $2 trillion and making founderElon Musk the world's first

trillionaire.

Chris Zaccarelli, chief investment officer at Northlight

Asset Management, said the successful SpaceX IPO was "a

barometer for overall risk appetite and the health of the market

in general."

On Wall Street, the Dow Jones Industrial Average

rose 353.51 points, or 0.70%, to 51,202.26, the S&P 500

rose 37.16 points, or 0.50%, to 7,431.46 and the Nasdaq

Composite rose 79.18 points, or 0.31%, to 25,888.84.

MSCI's gauge of stocks across the globe

rose 12.69 points, or 1.15%, to 1,112.24.

Earlier, the pan-European STOXX 600 index finished

up 1.88%. The European Central Bankraised interest rates for the

first time in nearly three years on Thursday to nip war-driven

inflation in the bud. Final inflation data from several European

countries including France and Spain showed inflation

accelerated in May, while official data showed Britain's economy

contracted by 0.1% in April - its first monthly drop since

August.

OIL MARKETS SLIDE

In energy markets, oil futures added to Thursday's losses.

U.S. crude settled down 3.23%, or $2.83, at $84.88 a

barrel after touching its lowest level in almost two months.

Brent finished the session at $87.33 per barrel, down

3.37%, or $3.05.

In fixed-income markets, U.S. Treasury yields rose from

one-week lows as traders kept an eye on Middle East updates and

looked ahead to next week's Federal Reserve policy meeting,

which will be the first under the leadership of Kevin Warsh.

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

1.6 basis points to 4.481%, from 4.465% late on Thursday, while

the 30-year bond yield rose 1.8 basis points to

4.9705%.

The 2-year note yield, which typically moves in

step with interest rate expectations for the Federal Reserve,

rose 1.7 basis points to 4.087%.

In currencies, the dollar index, which measures the

greenback against a basket of currencies including the yen and

the euro, rose 0.05% to 99.78, with the euro down 0.08%

at $1.1568.

Against the Japanese yen, the dollar strengthened

0.18% to 160.2. Traders are still on high alert for intervention

from Japanese authorities as the yen stays close to the 160

level that many see as a line in the sand.

In precious metals, spot gold fell 0.03% to $4,212.66

an ounce while spot silver rose 0.86% to $67.93 an ounce.