Stocks rallied globally as optimism grew regarding potential de-escalation in the Middle East. The Nasdaq rose 2%, with the S&P 500 nearing a record closing high, fueled by hopes for resumed talks between the US and Iran. Oil prices fell as both nations reportedly traded proposals concerning Iran’s nuclear activity.
Asian markets followed Wall Street’s gains, with investors increasingly confident that tensions will ease. Markets hardest hit by the conflict are beginning to recover. Expectations for a second round of talks, potentially held in Pakistan within days, drove the positive sentiment.
Despite gains, concerns remain as the US military initiated a blockade of Iranian ports along the Strait of Hormuz, raising fears for energy supplies. President Trump indicated Iranian officials are keen on reaching a deal, further boosting market appetite for risky assets.