Seoul: South Korean stocks opened sharply higher Wednesday as Iran said that it would guarantee safe passage through the Strait of Hormuz for a two-week ceasefire. The benchmark Korea Composite Stock Price Index (KOSPI) rose 309.92 points, or 5.64 percent, to 5,804.7 at the opening bell.

According to Yonhap News Agency, U.S. President Donald Trump announced in a social media post that the United States would suspend attacks on Iran for two weeks if Tehran agrees to the "complete, immediate and safe opening" of the crucial Strait of Hormuz. Trump noted that the U.S. received a 10-point proposal from Iran, which he sees as a "workable basis on which to negotiate."

Iran's foreign ministry also released a statement accepting the two-week ceasefire proposal. Previously, Trump urged Iran to open the critical waterway by 8:00 p.m. Tuesday (U.S. time), warning that the U.S. would otherwise target Iran's power plants and bridges.