The main indices in Wall Street rose to their highest levels in about a month on Wednesday after the United States and Iran agreed to a two-week ceasefire, which led to a decline in crude oil prices with expectations for the resumption of energy supplies through the Strait of Hormuz.

The announcement came hours before the deadline set by American President Donald Trump for Iran to reopen the Strait of Hormuz, the corridor through which about a fifth of global oil trade passes.

A high-ranking Iranian official told Reuters that the corridor may be opened on Thursday or Friday before the peace talks if the countries agree on a framework for the ceasefire.

Global markets, which were suffering from conflicting signals for weeks, witnessed an upward wave, with the rise of stock exchanges in Asia and Europe, while oil prices declined to less than 100 dollars per barrel.

David Morrison, senior market analyst at Trade Nation, said: "Whether these early risk-on moves are sustainable or not is another matter if shipments start moving through the Strait of Hormuz again, and there was strong evidence of the possibility of returning to the normal situation before the war, that will encourage investors."

He added: "But looking at the complexity of the surrounding issues, it is unlikely that a ceasefire for two weeks will be enough to convince investors that it is safe to return to the market."

At 10:06 AM US Eastern Time:

The Dow Jones Industrial Average rose 1,308.99 points, or 2.81%, to 47,893.45 points.

The SP 500 climbed 155.91 points, or 2.36%, to 6,772.76 points.

The Nasdaq Composite rose 617.51 points, or 2.81%, to 22,635.36 points.

The Russell 2000 index for small companies jumped 3% to reach its highest level in more than a month, while the CBOE volatility index declined 4.74 points to 20.99, after recording its lowest level since February 27.

The energy sector in the SP 500 was the only one in the red zone, declining by about 5%:

ExxonMobil lost 6.3%

Chevron decreased 5.5%

Occidental Petroleum declined 7.7%

The shares of travel companies jumped, as Southwest Airlines rose 10.8% and United Airlines 12.8%, which supported the industrial sector shares in the SP 500 with a rise of 3.8%, and it was the highest among the gaining sectors.

The cruise companies Carnival and Norwegian Cruise Line added 14.2% and 12% respectively.

The technology index in the SP 500 rose 2.8%, supported by the shares of electronic chip companies. The Philadelphia Semiconductor Index reached a record level briefly, as it rose in the end 5.3%.

The gains of the companies Goldman Sachs and American Express contributed to supporting the Dow Jones index.

This week, the focus will be on domestic inflation data to see if the high oil prices during the war increased price pressures. Also, the statements of Federal Reserve officials and the minutes of the March meeting will be analyzed.

Market bets show a 33.9% probability for a cut of 25 basis points in December, according to the FedWatch tool from CME, compared to 13.6% on the previous day. Traders were expecting two cuts before the outbreak of the war.

Among other prominent stocks:

Levi Strauss rose 12.8% after the company raised its annual sales and profit forecasts.

Delta Air Lines rose 8.6%, despite the expectation of profits lower than expected for the second quarter, and it did not update its annual forecasts due to uncertainty regarding fuel prices linked to the Iranian war.

Advancing shares outperformed declining ones by a ratio of 6.74 to 1 on the New York Stock Exchange, and by a ratio of 5.53 to 1 on Nasdaq.

The SP 500 recorded 18 new 52-week highs and recorded no lows, while the Nasdaq Composite recorded 108 new highs and 17 new lows.