Dow rises more than 1,300 points as oil falls after Iran ceasefire

The Dow gained about 1,342 points while U.S. and international oil benchmarks fell below $100 a barrel after a temporary ceasefire in the Iran war eased concerns about disruptions in the Strait of Hormuz.

U.S. markets moved sharply higher on Wednesday after reports of a temporary ceasefire in the conflict involving Iran. Equity indexes climbed at the open while oil prices dropped, reflecting reduced near-term concern about a prolonged energy supply shock. Officials and analysts said the pause in hostilities followed a 10-point proposal from Iran that U.S. officials described as a basis for negotiation. MarineTraffic reported early signs of vessel movement in the Strait of Hormuz after the announcement. Key facts: - The Dow Jones Industrial Average rose 1,342 points, or about 2.9%, to 47,926 at the opening bell; the S&P 500 gained 168 points, or about 2.6%, and the Nasdaq Composite rose roughly 3.3%. - West Texas Intermediate fell about 18% to $92.62 a barrel and Brent crude fell about 16.6% to $91.13 a barrel, according to FactSet. - MarineTraffic said there were early signs of ships moving through the Strait of Hormuz following the ceasefire announcement. - President Trump said his administration received a 10-point proposal from Iran described as a "workable basis" to negotiate; Iran acknowledged the deal and said it includes continued Iranian control over the Strait of Hormuz. - TD Securities analysts noted the ceasefire is set for two weeks and said tanker operators may be cautious about returning to the Strait while the longer-term outlook is unclear. Summary: Equity markets moved higher and oil prices fell after the reported ceasefire reduced immediate concerns about a sustained disruption to shipments through the Strait of Hormuz. How shipping patterns and energy markets evolve beyond the two-week ceasefire is undetermined at this time.