** Australian energy stocks .AXEJ fall as much as 1.8% to log their largest intraday pct drop since January 7

** Oil prices down nearly 3% on potential discussions between the U.S. and Iran O/R

** Sector leaders Woodside Energy WDS.AX and Santos STO.AX decline as much as 1.2% and 1.9%, respectively

** Santos logs its largest intraday pct loss since January 19

** Including the day's moves, AXEJ up 10.1% YTD, outperforming a 1.2% gain on AXJO

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))