* Brent crude below $80 on Iran supply hopes

* Warsh to navigate between dovish Trump and hawkish pricing

* Stocks sideways as chip selling eases; dollar steady

* European yields track Treasuries lower on oil price relief

(Updates prices after European market open, adds quotes)

By Tom Westbrook and Danilo Masoni

SINGAPORE/MILAN, June 17 (Reuters) - Crude prices fell on

Wednesday on news that Iranian fuel may soon hit the world's

markets, bringing inflation relief and pushing bond yields

lower, while stocks and currencies were quiet ahead of Kevin

Warsh's debut as Federal Reserve chair.

Brent crude futures dove below $80 and are down more

than a third from recent peaks following reports that the U.S.

will waive sanctions on Iranian oil, under a deal to end the

war.

The prospect of extra supply added to optimism about the

resumption of Middle East exports and helped push yields on U.S.

Treasuries lower along with 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.

German 10-year government bond yields, the euro

zone benchmark, fell for a fifth day, hitting their lowest point

since early April; they were last down 1.6 basis points at

2.91%.

British yields fell sharply after May inflation unexpectedly

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

is slated to unveil its next rate decision. U.S. Treasury yields

steadied at 4.43%, down around 23 basis points from a 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.

Falling oil prices could ease concerns about an economic

slowdown in energy-importing Europe, whose 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 0.1%, staying close

to Monday's record. Shares in BMW fell 8% 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 0.1% lower.

Wall Street futures pointed to a bounce in tech

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

resurfaced in the sector after a record-breaking run.

Chipmaker-heavy markets in Tokyo and South Korea

shrugged off a negative lead from U.S. selling in

semiconductor shares overnight, though a fall for Taiwan's TSMC

capped gains in Taiwan's benchmark.

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

was up 0.4% 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 160.2 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 $4,325 an ounce on Wednesday. Bitcoin has found

support above $64,000 and recently traded just above $65,400.