Global markets surged Tuesday while oil prices tumbled to their lowest levels since March after the U.S. and Iran reached an interim agreement to reopen the Strait of Hormuz. Stock futures jumped broadly, with Nasdaq-100 futures climbing more than 2% as investors reacted to easing geopolitical tensions.

Oil-importing nations led the charge, as Japan, South Korea and the Philippines saw major indexes rise over 5%. Brent crude futures plunged more than 5% below $83 a barrel, while WTI dropped 6%. Natural gas prices in Europe also fell sharply, signaling a broad commodities sell-off.

Bond yields retreated worldwide as lower energy costs reduced inflation fears. The dollar weakened against major currencies, and traders trimmed expectations for U.S. rate hikes this year. However, analysts caution the deal remains fragile, with final signing not expected until Friday and Iran's nuclear program slated for future negotiations.

This week's Federal Reserve meeting under new leadership will test whether the rally has legs. Markets now price in fewer rate cuts this year, but the central bank's stance on inflation remains uncertain. The geopolitical relief trade may prove short-lived if tensions flare again.