Seoul: The South Korean won strengthened sharply against the U.S. dollar Wednesday, as the United States and Iran agreed upon a two-week ceasefire in their monthlong conflict.

According to Yonhap News Agency, the won opened at 1,479.9 per dollar, up 24.3 won from the previous session. The gain came after U.S. President Donald Trump announced that he had agreed to refrain from attacking Iran for two weeks on the condition that Iran reopens the Strait of Hormuz. Tehran agreed to the reopening of this crucial waterway, provided that attacks against Iran are halted, as reported by foreign media.

"Easing tensions in the Middle East have calmed risk-off sentiment," Lee Yoo-jung, an analyst at Hana Bank, said. "Global oil prices have plunged, while the dollar has also weakened significantly on the news."

The dollar index, which measures the U.S. dollar against a basket of six major currencies, fell below the 99 level. Global oil prices tumbled, with Brent crude dropping nearly 15 percent to US$93.48.

The conflict, which began in late February following U.S.-Israeli strikes on Iran, has escalated into a broader regional confrontation, impacting global markets and driving up oil prices, as the Strait of Hormuz has effectively been shut.