Oil futures cratered on Wednesday morning after President Trump suspended a wide-ranging bombing campaign on Iran and announced a two-week ceasefire in the US-Iran war.

"I agree to suspend the bombing and attack of Iran for a period of two weeks," Trump wrote in a post to Truth Social on Tuesday evening, roughly an hour and a half ahead of his 8 p.m. ET deadline, "This will be a double sided CEASEFIRE! The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East."

Iran's foreign minister, Abbas Araghchi, confirmed its acceptance of the temporary truce in a statement shortly after Trump’s post. Araghchi said that if attacks on Iran are halted, its own operations would cease and that “for a period of two weeks, safe passage through the Strait of Hormuz will be possible via coordination with Iran’s Armed Forces.”

Futures on Brent crude (BZ=F), the international benchmark, fell 14% to trade near $94 a barrel Wednesday morning. Futures on the US benchmark, West Texas Intermediate (WTI) crude (CL=F), held onto losses of over 16% to change hands at just around $94.

Read more: What an extended war with Iran could mean for gas prices

Stocks also soared on the news. Futures on the S&P 500 (ES=F) surged by 2.7%, while those on the Dow Jones Industrial Average (YM=F) gained 2.6%, or more than 1,200 points. Contracts on the tech-heavy Nasdaq 100 (NQ=F) picked up a stronger 3.4%.

While the two-week ceasefire is underway, the Strait of Hormuz, through which 20% of the world's oil supply passes, remains a point of contention.

"Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan, and wherein they requested that I hold off the destructive force being sent tonight to Iran, and subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz," Trump wrote.

He added that the US received a "10 point proposal from Iran, and believe it is a workable basis on which to negotiate" bringing this long-term problem "close to resolution."

After Trump announced the ceasefire, US officials confirmed that the US halted attacks against Iran, while Iran's Araghchi said his country would "cease their defensive operation," according to the New York Times. Reports of attacks within Iran on the Lavan oil refinery, and retaliatory strikes in the UAE and Kuwait, were reported in regional media through Wednesday morning.

The ceasefire and subsequent negotiations come after Trump's post to Truth Social Tuesday morning, where he wrote, "A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will."

The president also wrote, in what some took as an opening for potential negotiations preempting the strikes, "Now that we have Complete and Total Regime Change, where different, smarter, and less radicalized minds prevail, maybe something revolutionarily wonderful can happen, WHO KNOWS?"

Prior to this evening, Iran's leadership on Tuesday left negotiation talks and was unwilling to discuss a temporary ceasefire, the New York Times reported, looking only for a full end to the war and the payment of reparations for damages, among other conditions.

While the US and Israeli militaries have struck a large range of primarily military and energy infrastructure targets within Iran through the course of the war, the US has so far refrained from striking domestic power plants, bridges, and desalination plants that provide critical services to noncombatant civilians within the country.

Trump pressed the Tuesday night deadline he imposed for Iran to make a deal in posts throughout the weekend and at the Monday press conference.

"After that, they’re going to have no bridges, they’re going to have no power plants — Stone Ages,” Trump said during Monday’s press conference.

Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Follow him on X at @byjakeconley or email him at jake.conley@yahooinc.com.

Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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