Oil and gas prices plunged, stock markets soared and the dollar retreated Wednesday after the United States and Iran agreed to a temporary ceasefire that could lead to the Strait of Hormuz reopening.

"A wave of relief has hit financial markets after threats of a devastating escalation of the war were replaced by a temporary truce," said Susannah Streeter, chief investment strategist at Wealth Club.

The most widely traded oil contracts fell some 15 percent to around $95 a barrel, after more than a month of conflict that killed thousands and hammered global markets.

By Christine Chen

SYDNEY, April 8 (Reuters) - Australia's most decorated living soldier will remain behind bars after his legal team did not seek bail following his arrest over multiple alleged war crimes, local media reported on Wednesday.

Police on Tuesday arrested and charged Ben Roberts-Smith, 47, with five counts of war crimes in connection with the murder of five civilians in Afghanistan between 2009 and 2012. Each charge carries a maximum sentence of life in jail.

Here are the latest economic events in the Middle East war:

- Asia stocks soar, oil plummets -

Stock markets in Japan and Korea soared early Wednesday after US President Donald Trump announced a two-week ceasefire with Iran, with talks during the interim period mediated by Pakistan.

Oil prices meanwhile plummeted, with both the WTI and Brent crude benchmarks falling below $100 a barrel.

- Iran agrees to safe Hormuz passage -

WASHINGTON, April 7 (Reuters) - U.S Secretary of State Marco Rubio said on Tuesday that American journalist Shelly Kittleson has been released after recently being kidnapped by Iran-aligned Iraqi armed group Kataib Hezbollah near Baghdad.

(Reporting by Ismail Shakil and Kanishka Singh)

By Kristina Cooke and Ted Hesson

WASHINGTON, April 7 (Reuters) - The FBI warned U.S. state and local law enforcement of an elevated threat posedby Iran's government to targets in the United States last month even as the White House sought to downplay the likelihood of an attack, a law enforcement intelligence report reviewed by Reuters shows.

BASRA, Iraq, April 7 (Reuters) - Protesters stormed the Kuwaiti consulate in the Iraqi city of Basra, police sources said on Tuesday, after a rocket attack fired from the direction of Kuwait killed three people.

At least three people were killed and five others wounded when rockets hit a house in Khor al-Zubair near Basra, security and health officials told Reuters.

Police said the death toll could rise as some family members remained under the debris.

By Kanishka Singh

WASHINGTON, April 7 (Reuters) - U.S. President Donald Trump said on Tuesday he has agreed to suspend the bombing of Iran for two weeks while accepting a 14-day truce proposal from mediators in the Iran war.

Trump said he spoke to leaders in Pakistan, which has been a mediator between Washington and Tehran and which had sought a two-week ceasefire.

WASHINGTON, April 7 (Reuters) - A personal envoy of U.N. Secretary-General Antonio Guterres plans to visit Iran as part of his efforts to encourage an end to the Iran war, but his travel plans will depend on security and logistics, a U.N. source said.

Jean Arnault, a veteran U.N. diplomat Guterres named as his envoy on the conflict last month, headed to the Middle East on Monday, but the U.N. has not announced details of his itinerary.

By Bo Erickson, Nandita Bose and Steve Holland

WASHINGTON, April 7 (Reuters) - U.S. President Donald Trump's warning to destroy Iran if it does not yield to his demands drew rebukes from around the globe and even unnerved some aides and supporters, though administration officials said the increasingly hostile rhetoric was merely a negotiating tactic to force Tehran to concede.

Pakistan was poised on Friday to host Iranian and US delegations for negotiations in its capital, although Tehran's participation remained uncertain after deadly Israeli strikes on Lebanon threatened this week's temporary truce.

Separately, Israel and Lebanon will hold talks in Washington next week, a State Department official said, amid mounting international concern that Israel's bombing campaign could shatter the already fragile two-week US-Iran ceasefire.