NEW YORK (AP) — Oil prices plunged below $100 a barrel and Asia markets and U.S. stock futures jumped after the U.S. and Iran agreed to a two-week ceasefire that includes the reopening of the Strait of Hormuz.

Japan’s benchmark Nikkei 225 rose 4.8% and South Korea’s Kospi gained 5.6%. Futures for the S&P 500 advanced 2.3% as of 9:30 p.m. EDT, while Dow futures rose 2%.

Futures for U.S. crude oil sank 14.3% to $96.83 a barrel and Brent crude oil, the international standard, dropped 13.3% to $94.74. Oil prices had spiked because the war snarled the production and transportation of crude in the Persian Gulf. Much of that oil exits the gulf through the Strait of Hormuz to reach customers around the world, but Iran had blocked it to enemies.

Late Tuesday, Trump said he was holding off on his threatened attacks on Iranian bridges, power plants and other civilian targets. Iran’s foreign minister said passage through the strait would be allowed for the next two weeks under Iranian military management.

The dramatic moves in prices are just the latest swings to hit financial markets since late February because of constantly shifting signals about when the conflict may end. Even with word of a ceasefire, neither Iran nor the United States said when it would begin, and attacks took place in Israel, Iran and across the Gulf region early Wednesday.

Earlier, U.S. stocks swung sharply during regular trading as uncertainty about the war with Iran increased after Trump had threatened that a “whole civilization will die tonight, never to be brought back again” if Iran does not meet his deadline at 8 p.m. Eastern time to open the Strait of Hormuz.

The S&P 500 fell as much as 1.2% but stocks rallied at the end of trading after Pakistan’s prime minister urged Trump to extend his deadline for another two weeks and asked Iran to open up the strait for the same amount of time.

The S&P 500 erased all its losses and ended with a modest gain of 0.1%. The Dow Jones Industrial Average dipped 85 points, or 0.2%, and the Nasdaq composite added 0.1%.

They’re the latest swings to hit financial markets since late February because of deep uncertainty about when the fighting may end.

Oil prices were likewise shaky. The price for a barrel of benchmark U.S. crude to be delivered in May briefly climbed above $117 before settling at $112.95.

Oil prices have spiked because the war has snarled the production and transportation of crude in the Persian Gulf. Much of that oil exits the gulf through the Strait of Hormuz to reach customers around the world, but Iran has blocked it to enemies.

The worry in markets has been that a long-term disruption will keep oil prices high for a long time and send a painful wave of inflation crashing through the global economy. Trump kept traders on edge by making a series of threats to blow up Iranian power plants only to delay several times.

The average price for a gallon of regular gasoline across the United States has leaped to $4.14, according to AAA. It was below $3 a couple days before the United States and Israel launched attacks to begin the war in late February.

In the bond market, Treasury yields eased on word of a potential cease-fire. The yield on the 10-year Treasury fell to 4.24% from 4.30% earlier Tuesday.

That’s still well above its 3.97% level from before the war, and the rise has pushed up rates for mortgages and other loans going to U.S. households and businesses, which slows the economy.

TEHRAN, Iran (AP) — U.S. President Donald Trump pulled back on his threats to launch devastating strikes on Iran late Tuesday, as the U.S. and Iran agreed to a two-week ceasefire that includes the reopening of the Strait of Hormuz.

Trump swerved to deescalate the war less than two hours before the deadline he set for Tehran to capitulate to a deal or face attacks on its bridges and power plants meant to destroy Iranian “civilization.”

Iran’s Supreme National Security Council said it has accepted the ceasefire and that it would negotiate with the United States in Pakistan beginning Friday. Neither Iran nor the United States said when the ceasefire would begin, and attacks took place in Israel, Iran and across the Gulf region early Wednesday.

Israel backed the U.S. ceasefire with Iran but the deal doesn’t cover fighting against Hezbollah in Lebanon, Prime Minister Benjamin Netanyahu said early Wednesday.

His office said in the statement that Israel supported Trump’s decision to suspend strikes subject to Iran immediately opening the Strait of Hormuz and stopping all attacks on the U.S. Israel and countries in the region. His office said Israel also supports U.S. efforts to ensure Iran no longer poses a nuclear or missile threat.

The ceasefire calls for Israel and Hezbollah to halt fighting in Lebanon, according to the prime minister of Pakistan, which has been mediating talks.

The ceasefire process was clouded in uncertainty after Iran released different versions of the 10-point plan intended to be the basis for negotiations. The version in Farsi included the phrase “acceptance of enrichment” for its nuclear program. But for reasons that remain unclear, that phrase was missing in English versions shared by Iranian diplomats to journalists.

Trump initially had said Iran proposed a “workable” 10-point plan that could help end the war launched by the U.S. and Israel in February. But he later called it fraudulent, without elaborating. Trump has said ending Iran’s nuclear program entirely was a key point of the war.

Pro-government demonstrators in the streets of Iran’s capital screamed: “Death to America, death to Israel, death to compromisers!” after the ceasefire announcement Wednesday morning. They also burned American and Israeli flags in the street.

It shows the ongoing anger from hard-liners, who had been preparing for what many assumed would be an apocalyptical battle with the United States.

Iran and Oman to collect shipping fees in Strait of Hormuz

Iranian Foreign Minister Abbas Araghchi said passage through the strait would be allowed under Iranian military management. It wasn’t immediately clear whether that meant Iran would completely loosen its chokehold on the waterway.

The plan allows for both Iran and Oman to charge fees on ships transiting through the strait, according to a regional official who spoke on condition of anonymity to discuss negotiations they were directly involved in. The official said Iran would use the money it raised for reconstruction.

In addition to control of the strait, Iran’s demands for ending the war include withdrawal of U.S. combat forces from the region, the lifting of sanctions and the release of its frozen assets.

Since the war began, Trump has repeatedly backed off deadlines just before they expire.

In doing so again Tuesday, Trump said in a social media post he had come to the decision “based on conversations” with Pakistan Prime Minister Shehbaz Sharif and Gen. Asim Munir, Pakistan’s powerful army chief. Sharif, in a post on X hours earlier, urged Trump to extend his deadline by two weeks to allow diplomacy to advance. He used the same post to ask Iran to open the strait for two weeks.

“Almost all of the various points of past contention have been agreed to between the United States and Iran, but a two week period will allow the Agreement to be finalized and consummated,” Trump said.

There are concerns in Israel about the agreement, according to a person familiar with the situation who spoke on condition of anonymity because they were not allowed to speak to the media. The person said Israel would like to achieve more.

Iran’s stockpile of highly enriched uranium is still buried at enrichment sites. The program had been one of the main issues cited by both Israel and the U.S. in launching the war.

Earlier Trump threats raised alarms

“A whole civilization will die tonight, never to be brought back again,” if a deal isn’t reached, Trump said in an online post Tuesday morning. But he also seemed to keep open the possibility of an off-ramp, saying that “maybe something revolutionarily wonderful can happen.”

Trump’s expansive threat did not seem to account for potential harm to civilians, prompting Democrats in Congress, some United Nations officials and scholars in military law to say such strikes would violate international law.

Tehran’s representative at the U.N., Amir-Saeid Iravani, said the threats “constitute incitement to war crimes and potentially genocide” and that Iran would “take immediate and proportionate reciprocal measures” if Trump launches devastating strikes.

The U.S. and Israel have battered Iran with attacks targeting its military capabilities, leadership and nuclear program. Iran has responded with a stream of strikes on Israel and Gulf Arab neighbors, causing regional chaos and outsized economic and political shock.

Late Tuesday, Pakistan’s prime minister urged Trump to extend his deadline by two weeks to allow diplomacy to advance. In a post on X, Shehbaz Sharif, whose country has been leading negotiations, also asked Iran to open up for two weeks the Strait of Hormuz.

China, which is Tehran’s biggest trade partner, encouraged the Iranians to find a way to a ceasefire as talks progressed, according to two officials who were not authorized to comment publicly and spoke on condition of anonymity.

Before the deadline, airstrikes hit two bridges and a train station, and the U.S. hit military infrastructure on Kharg Island, a key hub for Iranian oil production.

While Iran cannot match the sophistication of U.S. and Israeli weaponry or their dominance in the air, its chokehold on the strait since the war began in late February is roiling the world economy and raising the pressure on Trump both at home and abroad to find a way out of the standoff.

Airstrikes hit Iran, which fires on Saudi Arabia and Israel

Even as the ceasefire was announced, missile alerts continued in the United Arab Emirates, Israel, Saudi Arabia, Bahrain and Kuwait early Wednesday, hinting at the chaos surrounding the diplomatic moves. A gas processing facility in Abu Dhabi was ablaze after incoming Iranian fire, officials said.

Israel was continuing its attacks on Iran, said an Israeli military official who spoke on condition of anonymity in line with military regulations. Iran also kept up fire on Israel.

The U.S. military has halted all offensive operations against Iran but continues defensive actions, said an official, who spoke on condition of anonymity to describe sensitive military operations.

Earlier Tuesday the Israeli military said it attacked an Iranian petrochemical site in Shiraz, the second day in a row it hit such a facility. The military later said it also struck bridges in several cities that were being used by Iranian forces to transport weapons and military equipment.

More than 1,900 people have been killed in Iran since the war began, but the government has not updated the toll for days.

In Lebanon, where Israel is fighting Iran-backed Hezbollah militants, more than 1,500 people have been killed. and more than 1 million people have been displaced. Eleven Israeli soldiers have died there.

In Gulf Arab states and the occupied West Bank, more than two dozen people have died, while 23 have been reported dead in Israel, and 13 U.S. service members have been killed.

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Gambrell reported from Dubai, United Arab Emirates. Magdy reported from Cairo. Associated Press writers Farnoush Amiri at The United Nations; Aamer Madhani, Konstantin Toropin, Seung Min Kim, Michelle L. Price, Joshua Boak and Will Weissert in Washington; John Leicester in Paris; Nicole Winfield in Rome; Amir-Hussein Radjy in Cairo and Natalie Melzer in Jerusalem contributed to this report.

WASHINGTON (AP) — Steve Bannona longtime ally of President Donald Trump, on Monday won a Supreme Court order that is expected to lead to the dismissal of his criminal conviction for refusing to testify to Congress.

Prodded by the Trump administration, the justices threw out an appellate ruling upholding Bannon’s conviction for defying a subpoena from the House committee that investigated the Jan. 6, 2021, attack by a mob of Trump supporters on the U.S. Capitol.

The move frees a trial judge to act on the Republican administration’s pending request to dismiss Bannon’s conviction and indictment “in the interests of justice.”

The dismissal would be largely symbolic. Bannon served a four-month prison term after a jury convicted him of contempt of Congress in 2022. A federal appeals court in Washington had upheld the conviction.

The justices also issued a similar order in the case of former Cincinnati Councilman P.G. Sittenfeld, who was pardoned by Trump last year.

Sittenfeld had served 16 months in federal prison after a jury convicted him of bribery and attempted extortion in 2022. The high court order allows a lower court to consider dismissing his indictment.

The Justice Department brought the case against Bannon during Democrat Joe Biden’s presidency, but it changed course after Trump took office again last year.

Bannon had initially argued that his testimony was protected by Trump’s claim of executive privilege. But the House panel and the Justice Department contended such a claim was dubious because Trump had fired Bannon from the White House in 2017 and Bannon was thus a private citizen when he was consulting with the then-president in the run-up to the Capitol riot.

Bannon separately has pleaded guilty in a New York state court to defrauding donors to a private effort to build a wall on the U.S. southern border, as part of a plea deal that allowed him to avoid jail time. That conviction is unaffected by the Supreme Court action.