Wall Street Stocks Rise as Mideast Tensions Cool, Oil Prices Drop

Stock markets on Wall Street rose on Monday, while oil prices fell as tensions in the Middle East eased. The US and Iran paused their attacks, allowing negotiations to resume and potentially ending the war.

The S&P 500 index rose 0.6%, with the Dow Jones Industrial Average increasing by 518 points (1%) as of 9:55 a.m. Eastern time. The Nasdaq composite also gained 0.7%. Oil prices dropped sharply, with Brent crude falling 5.4% to $86.74 a barrel for October delivery.

The price decrease in oil is attributed to the reduced threat of supply disruptions following the US and Iran's decision to pause their attacks on each other. The Strait of Hormuz, which connects the Middle East to global markets, has seen increased traffic, easing concerns about global supplies. Gasoline prices have surged due to the conflict, but the latest developments may provide some relief.

The increase in oil prices last week was a major concern for investors, with Brent crude reaching over $100 a barrel before falling. The drop in yields on 10-year Treasuries also provided support to stocks, as it reduced pressure from interest rates.