Following US President Trump's announcement that he had called off planned military strikes against Iran, oil prices fell in response, and Wall Street traders pushed US stock markets higher, reigniting hopes for a diplomatic resolution to tensions with Iran.

The S&P 500 index rose by approximately 1%. The Philadelphia Semiconductor Index, which tracks chip stocks, halted its decline and rebounded, gaining 5.5%, which further boosted market optimism.

The price of US crude oil dropped below $88 per barrel.

Trump stated in a social media post, "I, as President of the United States, have canceled the strike and bombing action against Iran scheduled for tonight."

Trump wrote: Discussions and final points, both in principle and in detail, have been approved by all relevant parties, and the time and place for the signing of the agreement will be announced soon. He did not provide further details on the matter.