Singapore shares closed higher on Wednesday, tracking regional gains as investors reacted positively to news of the US and Iran agreeing on a two-week ceasefire and reopening of the Strait of Hormuz.

The Straits Times Index (STI), a key benchmark for the Singapore Exchange, ranged between 4,982.84 and 5,022.33 throughout the day. It ended the session at 4,996.05, up 38.04 points or 0.8% compared to Tuesday's close.

Trump said the pause in attacks would hold as long as Iran ensures the "complete, immediate and safe" reopening of the key shipping route, buying time for talks toward a broader deal to end the six-week conflict.

The two sides are now slated to meet in Islamabad, Pakistan, to discuss the formula of ending hostilities permanently.

On the corporate front, shares of Skylink (SGX:XZB) were up nearly 11% at the close as it secured more long-term commercial vehicle leasing contracts for the fiscal second half ended March 31 compared with the preceding six-month period.

Aspial Lifestyle (SGX:5UF) was up over 6% as its subsidiary, Maxi Cash (Malaysia), received acceptances to its offer from remaining shareholders for the acquisition of certain jewelry and pawnbroking companies in Malaysia.

Meanwhile, AnAn International (SGX:Y35) set up indirect subsidiaries in France, France Habitat Tech SAS and Kalandr SAS.