Oil slides after US-Iran ceasefire deal to reopen Strait of Hormuz

Global oil prices have fallen sharply and stock markets jumped after the US and Iran agreed to a conditional two-week ceasefire deal that includes the reopening of the key Strait of Hormuz waterway.The global benchmark oil price initially sank 15% to just under $92 (£67) before climbing back up slightly while US-traded oil dropped to about $96.However, oil prices remain higher than before the conflict started on 28 February. At the time, it was trading at around $70 a barrel.The cost of energy has jumped as oil and gas supplies from the Middle East have been severely disrupted after Iran threatened to attack ships trying to use the strait in retaliation to US and Israeli airstrikes.Stock markets in the US surged higher despite ongoing questions about the strength of the ceasefire deal, following sharp rises in Europe and Asia.The S&P 500 index of the largest firms listed in the US ended the day up 2.5%, while the Dow and Nasdaq closed 2.8% higher.In London, the FTSE 100 share index closed up 2.5%. In France, the CAC 40 ended the day 4.5% higher while Germany's Dax had climbed 4.7%.Japan's Nikkei 225 closed up nearly 5.4% while South Korea's Kospi jumped more than 6.8%. Hong Kong's Hang Seng ended 3% higher, while the ASX 200 in Australia gained 2.5%.