At the close, the Dow Jones Industrial Average had risen 1.8 percent, the broad S&P 500 1.2 percent, and the tech-heavy Nasdaq had jumped 1.5 percent.
The stock market rally followed a post on X by Iranian Foreign Minister Abbas Araghchi in which he announced that the Strait of Hormuz, vital 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 wrote in the post.
The price of oil fell sharply in the wake of the announcement, with North Sea crude dropping to about $85 per barrel. By 10 p.m. it had risen to just over $90, still below the levels of recent weeks.
