U.S. stocks climbed today as geopolitical jitters surrounding Iran subsided, leading to a drop in oil prices and easing inflation expectations. The Dow Jones Industrial Average gained 0.27%, closing at 52487.41, while the S&P 500 rose 0.81% to 7543.64. The Nasdaq Composite saw a more significant jump, adding 1.3% to reach 26206.89.

Oil futures fell 2% to $72.08 a barrel, down from recent highs near $76. Traders are now betting that tanker traffic in the Persian Gulf and the Strait of Hormuz will remain unimpeded, easing concerns that had threatened a recent peace deal. The de-escalation follows exchanges of fire between the U.S. and Iran, and interceptions of missiles by Jordan.

The moderation in oil prices directly impacted bond markets. Investors scaled back expectations of immediate interest rate hikes as inflation fears receded. The yield on the 10-year Treasury note dropped 0.030 percentage point to 4.539%, and the two-year Treasury yield fell 0.039 percentage point to 4.162%. The U.S. Dollar Index also saw a slight decrease.