Markets respond favorably to Trump's ceasefire announcement, relieving some economic pressure

With the whole world holding its breath amid the ongoing conflict in the Middle East over the past several weeks, President Trump's ceasefire with Iran has restored some confidence to the markets — though some uncertainty remains.

Oil prices dropped and stocks surged after Trump's announcement on Tuesday evening that a ceasefire had been reached with Iran.

Oil prices also plummeted as the Strait of Hormuz has been projected to be opened.

The Dow Jones Industrial Average rose over 1,300 points since the close of market on Tuesday following the announcement of the ceasefire.

Likewise, the S&P 500 saw a 2.5% jump from Tuesday to Wednesday in response to the news, moving from just over 6,600 to 6,785 when markets opened on Wednesday.

RELATED: Iran reneges on key point of ceasefire amid allegations of broken promises

Punit PARANJPE/AFP/Getty Images

The NASDAQ also saw a significant leap in response to the news, moving nearly 650 points for an almost 3% positive gain.

Oil prices also plummeted as the Strait of Hormuz has been projected to be opened. Crude oil WTI dropped from roughly 112 per barrel to just under 95 per barrel, a 17-point drop overnight.

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