Markets reverse, as U.S.-Iran ceasefire reopens critical oil strait

Global markets experienced heightened volatility ahead of a Tuesday 8 p.m. ET deadline for Iran to reopen the Strait of Hormuz.

President Donald Trump threatened significant military action if the deadline was not met.

Oil prices rose while the S&P 500 and Dow Jones Industrial Average fell in the hours leading to the deadline.

The U.S. and Iran reached a two-week ceasefire agreement to reopen the strait shortly after the deadline passed.

Oil prices plunged and U.S. stock futures surged immediately following the news of the diplomatic resolution.