Stocks soared and oil plunged in early trade in Asia on Wednesday after the United States and Iran agreed to a two-week ceasefire, with Tehran temporarily to reopen the vital Strait of Hormuz.

On oil markets, the US crude benchmark West Texas Intermediate (WTI) tumbled 16.56 percent to $96.39 per barrel, while Brent Crude was down 15.89 percent at $93.38.

On equities, Japan`s Nikkei 225 was up 4.38 percent at 55,771.56 points while in South Korea, the Kospi rocketed 5.71 percent to 5,808.65.

"As fears of an escalation in fighting dispelled, buying is likely to take the lead in the Japanese market," Tokai Tokyo Securities said before the opening bell in Tokyo.

After more than a month of attacks by the United States and Israel, Iran said it had agreed to talks with Washington to begin Friday in Pakistan on a path to end the conflict.

"Subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks," US President Donald Trump wrote on his Truth Social platform.

Iranian Foreign Minister Abbas Araghchi confirmed safe passage for two weeks for ships through the Strait of Hormuz, the gateway for one-fifth of the world`s oil which Tehran sealed off in retaliation for the war launched on February 28.