US stock markets posted broad gains on Monday, snapping a week of heavy selling in technology shares, as investors reacted to a sudden de-escalation in geopolitical tensions.
The rally was driven by a sharp decline in oil prices after the United States announced a pause in its military strikes against Iran, which had continued for 13 consecutive days.
The drop in energy costs helped lift sentiment across major indices, with the S&P 500 and Nasdaq Composite reversing their recent downward trajectory.
Markets had been weighed down by fears of prolonged supply disruptions, but the ceasefire announcement provided immediate relief to risk assets.
Despite the diplomatic pause, shipping activity in the Strait of Hormuz remains subdued.
Traffic levels in the critical chokepoint were low on Monday, reflecting lingering caution among tanker operators.
This follows weeks of warnings from Iran that vessels must use approved routes or face forceful responses, a stance that had previously kept insurance premiums and freight rates elevated.
The market's quick pivot highlights how heavily geopolitical risk premiums had been priced into energy and equity valuations.
With the immediate threat of expanded conflict receding, investors are now assessing the durability of the ceasefire and its impact on global supply chains.