Oil prices have dived, bonds rallied, and stocks surged as a two-week ceasefire involving Iran spurred a relief rally, with investors cheering the possible resumption of oil and gas flows through the Strait of Hormuz.

US President Donald Trump said late on Tuesday that he had agreed to suspend attacks on Iran for two weeks, adding that a long-term peace agreement was in progress.

Iran said it would halt its attacks if those against it stopped, and that safe transit through the Strait ‌of ⁠Hormuz would be possible for two weeks in coordination with the Iranian Armed Forces.

Global markets have been rattled since the US and Israel attacked Iran at the end of February, prompting Tehran to effectively close the Strait of Hormuz, a key waterway used to transit one-fifth of the world’s oil and gas.

US crude futures fell about 16.5 percent to $94 a barrel, S&P 500 futures leapt more than 2 percent, and the dollar fell broadly on Wednesday, having been a haven for investors during the turmoil.

“Markets have been predicting that Trump was looking for an off-ramp in Iran,” said Jamie Cox, managing partner at Harris Financial Group. “Today, he got one and took it.”

Futures pointed to broad gains in Asia’s stock markets, which have been hit by the war and soaring energy prices, while 10-year US Treasury futures rose about 15 ticks.

‘It’s a good start’

The announcement was made on social media, where Trump had on Tuesday written that “a whole civilisation will die tonight” if his demands were not met.

The US-Israel war on Iran saw the steepest monthly oil price rise in history, 50 percent in March.

Trump said the US had received a 10-point proposal from Iran , which he called a workable basis to negotiate, and ⁠said the parties were very far along in reaching a definitive agreement for long-term peace.

“It’s a good start and could pave the ⁠way to a more permanent reopening – but lots of ifs still to work out,” IG analyst Tony Sycamore wrote in a note.