Wall Street equities advanced on Monday as the prospect of a formal peace agreement between the United States and Iran injected a wave of relief into risk assets.
The two governments announced late Sunday that they intend to sign the deal on Friday, marking a dramatic reversal from weeks of stalled negotiations and failed breakthroughs.
The development signals a potential end to the two-month-old conflict involving the United States and Israel, which has weighed heavily on global energy markets and geopolitical risk premiums.
The sudden shift in diplomatic posture has triggered a broad repricing of risk.
Investors, who had been pricing in prolonged instability and potential escalation, are now rapidly unwinding geopolitical risk premiums.
The market reaction underscores how deeply the conflict had impacted sentiment, with the prospect of a ceasefire providing a much-needed catalyst for renewed buying interest in equities and a retreat in safe-haven demand.