NEW YORK, April 9 -- Oil and gas prices plunged, stock markets soared and the dollar retreated Wednesday after the United States and Iran agreed to a temporary ceasefire that could lead to the Strait of Hormuz reopening.

"A wave of relief has hit financial markets after threats of a devastating escalation of the war were replaced by a temporary truce," said Susannah Streeter, chief investment strategist at Wealth Club.

The most widely traded oil contracts fell some 15 per cent to around US$95 (RM379) a barrel, after more than a month of conflict that killed thousands and hammered global markets.

But on Wednesday, investor relief sent markets soaring, with Wall Street's three main indexes climbing more than 2.5 per cent.

Europe's main ...