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

Stocks on Wall Street opened higher on Monday as tensions in the Middle East showed signs of easing. The US and Iran have paused their attacks, and work has resumed to restart negotiations to end the war.

The S&P 500 index fell by 0.2% after two consecutive weekly losses. However, the Dow Jones Industrial Average rose 218 points or 0.4%, while the Nasdaq composite dropped by 0.6%. The oil price dropped by 5.5% to $86.60 a barrel for October delivery after surging to over $100 last week.

The war between the US and Iran has significantly reduced traffic through the Strait of Hormuz, affecting global oil supplies. This has led to higher gasoline prices and increased shipping costs, with businesses typically passing these costs on to households.