US stocks surged Wednesday morning as oil plunged near $90 after President Trump said he had agreed to a two-week ceasefire with Iran — paving the way to reopen the Strait of Hormuz.
The Dow Jones Industrial Average soared 1,389 points, or 3%, as of 9:38 a.m. ET, while S&P 500 and Nasdaq futures jumped 2.5% and 3.2%, respectively.
Brent crude oil prices dropped 16.6% to $91.09 a barrel – its lowest price in nearly a month after news that Iran would allow the temporary safe passage of ships through the strait, a vital maritime route for 20% of the world’s oil supply.
West Texas Intermediate crude also fell 5.6% to $70.94 a barrel.
In a Truth Social post Tuesday evening, less than two hours before Trump’s deadline for Iran to reopen the strait or face a bombardment of its power plants and bridges, the president announced a “double sided” two-week ceasefire.
“I agree to suspend the bombing and attack of Iran for a period of two weeks,” Trump wrote, adding that the ceasefire was subject to the “COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz.”
“We received a 10 point proposal from Iran, and believe it is a workable basis on which to negotiate,” he continued.
This is a developing story. Please check back for updates.
