Shortly after the open, the Dow Jones industrial average rose 1.2 percent, the broad S&P 500 rose 0.7 percent and the technology-heavy Nasdaq rose 1 percent.
The stock market rally follows a post on X from Iranian Foreign Minister Abbas Araghchi in which he claims that the Strait of Hormuz, which is so important for world trade, is open again "as long as the ceasefire applies."
"In line with the ceasefire, the Strait of Hormuz is open to passage for all commercial vessels as long as the ceasefire is in effect," Araghchi writes in the post.
The price of oil dropped significantly after the announcement. At 3:30 p.m., a barrel of North Sea oil was trading at around $89.
