“There is a reason to be optimistic, but it is still too early to tell, because, as you know, after all, it is Trump,” said Takashi Hiroki, chief strategist at MONEX.

So far in the war, Trump has set several deadlines for Iran to open the Strait of Hormuz and has threatened big repercussions if Iran doesn’t, only to delay them.

It’s similar to a year ago, when Trump threatened stiff tariffs on imports from other countries on “Liberation Day.” After a couple delays, his administration eventually negotiated lower tariffs with many countries, though they were still higher than from before his second term. That led some investors to allege Trump “always chickens out,” or “TACO,” if financial markets show enough pain.

“Is it just kicking of the can down the road, moving the goalposts, TACO Tuesday, or whatever metaphor we’d like, to only to have tempers flare and bombs drop again?” Brian Jacobsen, chief economic strategist at Annex Wealth Management, asked about the two-week ceasefire with Iran. “Who knows? But it’s good enough for now to elicit a positive response from the markets.”

The price for a barrel of benchmark U.S. crude oil plunged 17.7% to $92.92. Brent crude, the international standard, tumbled 16.1% to $91.68 per barrel. It had briefly topped $119 when worries about the war with Iran were at their highest.

The next moves for oil prices will likely depend on how many oil tankers can start exiting the Strait of Hormuz and how easy their passage is. Iran said the deal would allow it to formalize its new practice of charging ships passing through the Strait of Hormuz, a crucial transit lane for oil, but the terms were not clear

United Airlines soared 12%, which could count as a decent year for the stock. It cut into its loss for the year that came into the day at 20.1%.

Delta Air Lines climbed 8.2% after it also reported a stronger profit for the latest quarter than analysts expected. CEO Ed Bastian said demand for flights remains strong, and it’s making moves to make up for higher fuel bills. Delta on Tuesday became the latest airline to raise its fees for checking bags.

Cruise ship operator Carnival climbed 13.7%.

In the bond market, Treasury yields eased as hopes built that an easing of oil prices could let the Federal Reserve resume its cuts to interest rates later this year.

The yield on the 10-year Treasury fell to 4.26% from 4.33% late Tuesday. That’s a notable move for the bond market, and lower Treasury yields give a boost to prices for stocks, bonds and all kinds of other investments. The drop should also help ease some of the quick recent rise in rates for mortgages and other loans taken out by U.S. households and businesses, which have been slowing the economy.

When oil prices were screaming higher because of the war, some traders were betting on the possibility that the Fed would have to raise interest rates to keep a lid on inflation. Now, though, they’re seeing a nearly 39% chance that the Fed could resume its cuts to rates in 2026, according to data from CME Group.

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AP journalists Yuri Kageyama, Matt Ott, Mayuko Ono and Jon Gambrell contributed to this report.