Markets feel relief as the U.S. and Iran agree to a ceasefire on their earlier 'ceasefire' that was looking at lot like a war over Hormuz | Fortune

Stock futures rallied on Sunday evening after the U.S. and Iran appeared to step back from a weekend of escalating violence in the Persian Gulf.

Futures tied to the Dow Jones industrial average rose 101 points, or 0.19%. S&P 500 futures were up 0.45%, and Nasdaq futures jumped 0.64%.

But energy markets were still spooked as any fighting around the Strait of Hormuz threatens the nascent recovery in ship traffic through the vital chokepoint.

U.S. oil futures climbed 1.5% to $70.29 a barrel, and Brent crude rallied 1.1% to $72.80.

Sources told Axios that both sides agreed to halt attacks on each other and meet in Qatar on Tuesday to resolve differences over the Strait of Hormuz.