** Energy stocks .AXEJ fall as much as 2.1% to 6808.6 points; last down 1.4%

** Oil prices shed more than 2% on signs of progress in U.S.-Iran talks, while caution prevailed over economic headwinds from tariffs that could curb fuel demand O/R

** Sector majors Woodside Energy WDS.AX falls 1.2%, its smaller peer Santos STO.AX down 0.4%

** YTD, AXEJ loses 20.5%

(Reporting by Jasmeen Ara Shaikh in Bengaluru)

((JasmeenAraIslam.Shaikh@thomsonreuters.com;))