Mexico's S&P/BMV IPC index climbed 0.62% to close at 67,641 on Monday, driven by a broad-based relief rally across Latin American markets.
The gain followed a week of volatility as investors reacted to a sudden de-escalation in geopolitical tensions between the United States and Iran.
The shift in sentiment has calmed fears of a potential supply disruption in global oil markets, which had previously weighed heavily on regional equities.
The Mexican peso held firm against the dollar during the session, reflecting the stabilizing effect of lower risk premiums.
As a major oil exporter, Mexico's market performance is closely tied to energy prices and the broader risk appetite on Wall Street.
The recent easing of the standoff has removed a key overhang, allowing capital to flow back into emerging market assets that had been under pressure from the threat of higher energy costs and shipping disruptions.