Oil prices plunged and U.S. stock futures jumped after President Donald Trump held off on his threat of devastating attacks on Iran. U.S. crude oil futures fell more than 15%. Futures for the S&P 500 were up 2.

U.S. stock futures jumped and oil prices fell on Tuesday evening, after President Donald Trump announced a two-week-long cease-fire deal with Iran that would delay a planned American bombing assault on the country and make more time for negotiations between the two sides.

Economists fear the current oil shock will undoubtedly cause an increase in inflation, on top of the existing affordability crisis. Joe Brusuelas, Chief Economist at RSM U.S., tells Becky Anderson about his concerns.

"This is a potentially huge market event like no other. It's a known unknown with a clock," one investment adviser said.

The US president has threatened to take out Iran "in one night" if it does not agree to open the Strait of Hormuz.

Trump wrote on Truth Social that "A whole civilization will die tonight" as his 8 p.m. ET ceasefire deadline approaches.

Oil futures rose as the U.S. hit military targets on Iran’s Kharg Island ahead of President Trump’s deadline for Iran to reopen the Strait of Hormuz.

Oil futures were mixed while government bond prices fell as Iran fired missiles and drones into Gulf countries and Israel after President Trump stepped up his threats against Iran.