Brent crude fell 5.4% to $86.74 a barrel Monday, reversing last week’s spike above $100 after the U.S. and Iran paused attacks and resumed work on negotiations.
Wall Street rallied with that relief: the S&P 500 gained 0.6%, the Dow added 518 points and the Nasdaq rose 0.7% in early trading.
Treasury yields also eased, with the 10-year yield slipping to 4.65% from 4.69%, while Microsoft rose 2.6% and Alphabet climbed 2.8%, adding support to the broader market.
The conflict had sharply curtailed traffic through the Strait of Hormuz, pushing up gasoline and shipping costs worldwide, and investors now face a busy week of U.S. consumer confidence, inflation and Federal Reserve updates.