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 finalize the deal, marking a significant de-escalation in tensions that have weighed on global markets for months.
Shell recently warned of a looming LNG supply crunch as Hormuz shipping risks persisted, highlighting the tangible economic stakes of the geopolitical standoff.
The positive sentiment spread across major indices, with investors rotating out of safe-haven assets and into equities.
The market reaction reflects growing confidence that the diplomatic breakthrough could stabilize energy supply chains and reduce the risk premium embedded in oil and shipping costs.
This development comes as shipping unions have maintained a warzone status for the Strait of Hormuz amid persistent vessel attacks.
Shell recently warned of a looming LNG supply crunch as Hormuz shipping risks persisted, highlighting the tangible economic stakes of the geopolitical standoff.