Markets on Wall Street soared overnight and U.S. crude prices plunged 13% after China’s foreign minister on Wednesday called for a comprehensive ceasefire in the Iran war, the latest spark of optimism that the two-month war could end soon.

Futures for the S&P 500 rose 1% before the opening bell, while futures for the Dow Jones Industrial Average climbed 1.2%. Nasdaq futures jumped 1.7%.

Wang Yi, speaking after meeting with Iranian Foreign Minister Abbas Araghchi, said China was “deeply distressed” by the conflict. Araghchi was visiting Beijing for the first time since the war with the U.S. and Israel started Feb. 28.

China’s close economic and political ties to Tehran give it a unique position of influence. The Trump administration is pressing China to use that relationship to urge the Islamic Republic to open the Strait of Hormuz.

News that Iranian officials were traveling to China ahead of a summit between U.S. President Donald Trump and Chinese leader Xi Jinping lifted market sentiment.

Oil prices spiraled soon after Wang's comments, with prices for a barrel of U.S. crude falling more than $13 to $88,88 per barrel. Brent crude, the international standard, retreated $12.66 to $97.21 a barrel, extending declines that erased big jumps earlier in the week. The prices still remain well above their roughly $70 price before the war with Iran began.

Sinking oil prices sent energy giants shares sliding overnight, with Chevron, Exxon Mobil and ConocoPhillips all seeing losses of close to 5%.

The prospect of lower jet fuel prices pushed major U.S. airlines up, with Delta, United and American all gaining more than 6% in premarket trading.

The Chinese minister’s comments followed an earlier statement by U.S. President Donald Trump that he was pausing his short-lived U.S. effort to guide stranded commercial vessels out of the Strait of Hormuz in hopes that a deal could be finalized. A shaky ceasefire has been largely holding, despite exchanges of fire during the U.S. push to reopen the strait on Monday.

Also Tuesday night, Secretary of State Marco Rubio said the major U.S. military operation against Iran is over but stopped short of saying the conflict is over or cannot be restarted.

Source: WPLG