U.S. stocks rebounded Thursday as China pushed Iran for safe passage through the Strait of Hormuz, easing fears of prolonged energy supply disruptions. The diplomatic talks came amid a sixth day of U.S.-Israeli tensions with Tehran, with investors closely watching the critical shipping route that handles a fifth of global oil and LNG supplies.

Ship tracking data showed the Iron Maiden vessel passed through the strait overnight after changing its signaling to 'China-owner,' suggesting tentative progress. China, which depends on Middle Eastern energy for about 45% of its oil imports, is leveraging its influence with Tehran to restore flows through the vital waterway. Three diplomatic sources confirmed the discussions to Reuters.

The potential breakthrough offered markets hope that energy flows could resume despite the ongoing conflict. The Strait of Hormuz remains one of the world's most important oil chokepoints, connecting Middle Eastern producers to major Asian markets. Any prolonged closure threatens to disrupt global energy supplies and drive up prices, making China's diplomatic efforts crucial for market stability.