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SINGAPORE, April 8 (Reuters) - Oil prices dived, bonds

rallied and stocks surged on Wednesday after a two-week

ceasefire in the Middle East spurred a relief rally as investors

cheered the possible resumption of oil and gas flowing through

the Strait of Hormuz.

U.S. President Donald Trump said he agreed to suspend

bombing and attacks on Iran for two weeks and that a long-term

peace agreement was in progress.

Global markets have been rattled since the U.S. and Israel

attacked Iran at the end of February, leading Tehran to

effectively close the Strait of Hormuz, a key waterway used to

transit one-fifth of the world's oil and gas.

U.S. crude futures fell around 16.5% to $94 a barrel,

S&P 500 futures leapt over 2% and the dollar fell

broadly, having been the haven of choice for investors during

the tumult.

"Markets have been predicting that Trump was looking for an

off-ramp in Iran," said Jamie Cox, managing partner at Harris

Financial Group. "Today, he got one and took it."

Futures pointed to broad gains for Asia's stock markets,

which have been beaten down by war and soaring energy prices,

and 10-year U.S. Treasury futures jumped about 15 ticks.

The risk-sensitive Australian dollar rose 1.3% to

above $0.7070 and the euro gained 0.76% to $1.1683.

Cryptocurrencies also rose.

Trump had set a late Tuesday deadline for a deal with Iran

to be reached, threatening to destroy every bridge and power

plant in the country if Iran did not reopen the Strait of

Hormuz. Iran had said it would retaliate against U.S. allies in

the Gulf.

The six-week conflict has sent oil prices surging, stoked

worries of inflation and upended the global rates outlook with

countries and companies scrambling to adjust to the energy

shock.

In commodities, gold prices rose over 2% to $4,812

per ounce.