Nasdaq futures experienced a significant increase on Wednesday, while oil prices plummeted in response to the relief stemming from the agreement between the US and Iran on a two-week ceasefire, which may facilitate the reopening of the Strait of Hormuz to shipping activities. S&P 500 futures surged by 2.7%, while those on the tech-heavy Nasdaq 100 experienced a remarkable increase of 3.5%. Futures for the Dow Jones Industrial Average surged by 2.5%, translating to an increase of over 1,000 points.

Global markets are experiencing a resurgence in risk appetite following President Trump’s proposal for a two-week cessation of hostilities in exchange for Tehran’s agreement to lift its blockade of the Strait of Hormuz. He stated on Truth Social: “I agree to suspend the bombing and attack of Iran for a period of two weeks. This will be a double-sided ceasefire!” The call was made just hours prior to the expiration of his 8 p.m. Tuesday deadline to initiate a significant bombing campaign on Iran.

Abbas Araghchi, Iran’s foreign affairs minister, acknowledged the acceptance of the terms in a statement following Trump’s announcement. He indicated that if attacks on Iran were to stop, Iran would also cease its operations, adding that “for a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran’s Armed Forces.” The reopening of the vital 21-mile-wide waterway is poised to exert a significant influence on energy markets, which responded swiftly to the announcement. Oil prices experienced a significant decline, as Brent crude futures fell nearly 14% to just above $94, while West Texas Intermediate crude dropped almost 16% to around $95.

The decline in oil prices has bolstered expectations that the Federal Reserve may reinitiate interest-rate reductions this year, as the likelihood of persistent inflation diminishes. The forthcoming release of the minutes from the Federal Reserve’s March meeting on Wednesday may provide insights into the policymakers’ perspectives regarding the economic implications of the conflict in Iran. On the corporate front, Delta Air Lines is scheduled to report quarterly results before the opening bell. Investors are closely monitoring indicators of the Iran conflict’s repercussions, particularly following the suspension of flights and the surge in jet fuel prices.