Wall Street pushed higher on Tuesday as the S&P 500 logged its seventh straight gain, while the Dow turned positive for the calendar year. Traders cited growing optimism that Washington could broker a longer‑term peace accord with Iran, a narrative that lifted risk‑on sentiment across equities.

Oil prices rebounded sharply in morning trade after Israel resumed strikes on Lebanon, prompting concerns that the fragile two‑week cease‑fire announced by the Trump administration could unravel. Despite the flare‑up, the Strait of Hormuz remained largely closed, limiting supply disruptions and allowing energy stocks to recover modestly.

Investors weighed the geopolitical risk against the prospect of a diplomatic breakthrough, keeping the market’s upside intact. The Dow’s year‑to‑date rise now sits above zero, a rare positive reading that may attract momentum funds seeking fresh returns after a prolonged bear market in 2025.

Overall, the rally reflects a tentative shift from war‑fatigue to cautious optimism, as traders hope diplomatic channels will keep oil supplies stable and equities buoyed. With the cease‑fire under pressure, any further escalation could reverse gains, but for now the market rides on the hope of a steadier Middle East.