Oil prices plummeted below $100 a barrel after the US and Iran agreed to a two-week ceasefire that includes the reopening of the Strait of Hormuz.
Asia markets and US stock futures surged, with Japan's Nikkei 225 rising 4.8% and South Korea's Kospi gaining 5.6%.
Futures for the S&P 500 advanced 2.3% and Dow futures rose 2%, while futures for US crude oil sank 14.3% to $96.83 a barrel and Brent crude oil dropped 13.3% to $94.74.
The ceasefire will allow passage through the Strait of Hormuz for the next two weeks under Iranian military management.
Despite the agreement, neither Iran nor the US specified when the ceasefire would begin, and attacks took place in Israel, Iran, and across the Gulf region early Wednesday.
