US equity futures advanced on Monday morning, buoyed by reports that the United States and Iran have agreed to cease retaliatory attacks that began over the weekend.
The development signals a de-escalation in tensions in the Middle East, allowing investors to pivot away from safe-haven assets and back toward riskier equities.
The market reaction follows a broader shift in sentiment that began late Sunday, when both governments announced their intention to pursue a formal peace agreement.
That initial disclosure triggered a wave of relief buying across Wall Street on Monday, with major indices posting gains as the immediate threat of renewed conflict receded.
Tuesday's session opened in positive territory, marking a continuation of the risk-on momentum as traders assessed the durability of the truce.
The ceasefire agreement addresses the primary driver of volatility in global markets over the past week: the fear of a broader regional war disrupting energy supplies and trade routes.