Global stock markets extended their rally Thursday as diplomatic optimism grew over potential peace talks in the Middle East. The S&P 500 hit a record high Wednesday and remains 2 percent above pre-conflict levels from February 28. Brent crude held steady around $95 per barrel while West Texas Intermediate crude rose slightly to $92.

Despite the U.S.-Iran cease-fire expiring next week, both sides continue negotiations with the White House expressing optimism about reaching a deal. The Strait of Hormuz remains a critical chokepoint, normally carrying one-fifth of global oil supplies through the narrow waterway between Iran and Oman. European markets opened higher, with the Stoxx 600 gaining 0.2 percent as investors bet on regional stability.

Asian markets surged on the oil price relief, with Japan's Nikkei 225 jumping nearly 3 percent and South Korea's Kospi rising over 2 percent. Hong Kong's Hang Seng and mainland Chinese exchanges also posted gains. U.S. futures pointed to modest increases, pushing the S&P 500 further into record territory. Meanwhile, gasoline prices retreated to a national average of $4.09 per gallon, down from recent peaks despite remaining 37 percent higher than pre-war levels.