Markets rallied as oil prices climbed and stocks gained on optimism about a potential US-Iran deal. Iran currently reviews a Washington-backed peace proposal while former President Trump stated the conflict would end if both sides reached an agreement. Investors bet on reduced regional tensions, pushing energy markets higher amid fragile Middle East peace prospects that could reshape global commodity flows.

Israel launched an air strike on Beirut's southern suburbs, expanding attacks that have killed nearly 100 people since an April 16 ceasefire agreement. The Beirut strike marked the first attack on the capital since April 8, when devastating attacks killed more than 300 across Lebanon. Israel maintains the ceasefire allows continued strikes on Hizbollah targets it claims pose immediate threats, complicating diplomatic efforts.

The potential diplomatic breakthrough could ease market volatility in energy sectors, with analysts closely monitoring developments. Energy stocks showed particular strength as traders anticipated reduced supply disruptions. Business leaders watch how the evolving situation might affect global supply chains and regional investment strategies amid the delicate balance between diplomatic progress and continued military action in the oil-rich region.