Asia-Pacific markets set to rise after Trump says Israel and Iran agree to ceasefire

Asia-Pacific markets are set to open higher Tuesday, after United States President Donald Trump announced that Iran and Israel have agreed to a ceasefire.

Japan's benchmark Nikkei 225 was set to open higher, with the futures contract in Chicago at 38,920 while its counterpart in Osaka last traded at 38,620 against the index's last close of 38,354.09.

Futures for Hong Kong's Hang Seng index stood at 23,721, pointing to a higher open compared to the HSI's last close of 23,689.13.

Australia's S&P/ASX 200 is also slated to open higher, with futures tied to the benchmark at 8,520, compared to its last close of 8,474.9.

U.S. futures took a leg higher following Trump's announcement. Futures tied to the Dow Jones Industrial Average added 134 points, or 0.3%. S&P 500 futures gained 0.4%, while Nasdaq 100 futures rose 0.6%.

Overnight stateside, the three major averages closed higher as investors breathed a sigh of relief that Iran's response to the U.S. attacks over the weekend was more restrained than expected. The Dow Jones Industrial Average added 374.96 points, or 0.89%, ending at 42,581.78. The S&P 500 gained 0.96% and closed at 6,025.17, while the Nasdaq Composite climbed 0.94% and settled at 19,630.97.

Stocks close higher

Stocks closed higher while oil tumbled on Monday, with investors largely shaking off escalating tensions in the Middle East.

The S&P 500 added 0.96% to finish the session at 6,025.17, while the Nasdaq Composite climbed 0.94% to 19,630.97. The Dow Jones Industrial Average gained 374.96 points, or 0.89%, to close at 42,581.78.

U.S. crude oil futures slipped more than 7% to settle at $68.51 per barrel, after hitting their highest level since January overnight.

U.S. crude prices tumble 7%

Crude prices tumbled Monday after Iran's response to U.S. attacks was more muted than traders feared. West Texas Intermediate futures settled more than 7% lower at $68.51 per barrel.

“I think people realize that things in the Middle East will eventually de-escalate and will be in place of a much safer, a much more stable Middle East and world as a whole,” Energy Secretary Chris Wright told CNBC on Monday as oil sold off, crediting President Donald Trump's foreign policy.