US equity markets surged higher on Monday as oil prices collapsed following the announcement that the United States has paused its military campaign against Iran.
The cessation of hostilities, which ended a 13-day bombing offensive, triggered a sharp repricing of geopolitical risk across global markets, sending the three major Wall Street indices into positive territory from the open.
Brent crude fell sharply as traders unwound positions built on fears of supply disruption in the Strait of Hormuz.
The rapid decline in energy costs provided immediate relief to inflation-sensitive sectors and boosted sentiment among risk assets.
The move marks a significant shift from recent sessions, where US equities had staged only tentative recoveries despite opening near flat, as investors remained wary of escalating Middle East tensions.
The ceasefire removes the immediate threat to global shipping lanes that had kept freight rates elevated and energy markets volatile.