At the close of trading, the Dow Jones industrial average had climbed 2.9 percent, the broad-based S&P 500 had gained 2.5 percent, and the tech-heavy Nasdaq composite index rose 2.8 percent.
Less than a day earlier, it became clear that Washington and Tehran had agreed, through mediators, to a two-week ceasefire that also included the opening of the Strait of Hormuz, allowing oil exports from the Persian Gulf.
On Wednesday, however, significant clouds of concern intensified, especially after Israel carried out intense attacks on Lebanon that are feared to have cost hundreds of lives. In response to the attacks, Tehran announced that the strait was closed and demanded that Lebanon also be included in the ceasefire.
The price of oil plummeted after the ceasefire announcement, with a barrel of North Sea oil at its lowest point at around $90 per barrel, but has since risen slightly and was around $96 per barrel at 10 p.m.
