US equities closed sharply higher on Tuesday, driven by growing confidence that a diplomatic breakthrough is imminent between the United States and Iran.
The rally was fueled by comments from US Treasury Secretary Scott Bessent, who signaled that an agreement to reopen the Strait of Hormuz is nearing completion.
The prospect of restored shipping lanes in the critical chokepoint has rapidly de-escalated geopolitical risk premiums across global markets.
The S&P 500 led the advance, reaching its first all-time high in two months as investors rotated into risk assets.
The Dow Jones Industrial Average also posted solid gains, reflecting broad-based buying interest.
The market reaction underscores how heavily the threat of Hormuz disruption had weighed on equity valuations; the mere expectation of a resolution was sufficient to trigger a significant repricing of geopolitical risk.