** S&P 500 energy index falls 0.5% as oil prices drop around 2%

** Brent crude futures down 1.9% at $73.74/barrel; U.S. West Texas Intermediate crude futures down 2.1% at $69.75/barrel

** Oil prices tumbled after Axios reported that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict, citing an unnamed senior U.S. official

** Top oil co Exxon Mobil down 0.6%

** ONEOK down 2%, Conocophillips falls 1.4%, and Diamondback Energy down 1.3%; among top pct losers on the energy index

** Pipeline operator ONEOK on Sunday had agreed to buy the remaining shares of EnLink Midstream for $4.3 bln in an all-stock deal

(Reporting by Pooja Menon in Bengaluru)

((Pooja.Menon@thomsonreuters.com;))