US stock market climbs as US-Iran deal stirs hopes for end to energy chaos

US stock markets surged on Monday following a tentative agreement between the United States and Iran to end hostilities, sparking hopes that energy supply chains disrupted by months of turmoil in the Strait of Hormuz could return to normal.

The S&P 500 rose 1.7%, bringing the benchmark index within striking distance of its all-time high. The tech-heavy Nasdaq Composite jumped 3.1%, boosted by a 19.6% gain in SpaceX shares after the company made the largest market debut in history on Friday, creating the world's first trillionaire, Elon Musk. The blue-chip Dow Jones Industrial Average climbed 0.9%, closing at a record high.

Brent crude futures, the global oil benchmark, fell nearly 5% to just above $83 a barrel, the lowest since the conflict began. Asian stock markets were largely flat on Monday morning after surging the previous day on news of US President Donald Trump's deal with Tehran.

As of 01:30 GMT, Japan's Nikkei 225 was 0.01% lower, South Korea's Kospi edged down 0.06%, Taiwan's TAIEX rose 0.2%, and Hong Kong's Hang Seng Index slipped 0.07%.

Jay Goldberg, a senior analyst for tech equities at Seaport Research Partners in Chicago, said the announcement had shifted investor sentiment, encouraging more risk-taking. "The war is over, it seems, so that side of the argument falls away. Investors are now feeling better about taking on more risk," he told Al Jazeera.

While the framework deal has raised hopes for stability, a full return to normal energy flows is expected to take months due to a massive backlog of vessels around the Strait of Hormuz and the need to ensure the waterway is clear of Iranian naval mines. According to the International Shipping Chamber, about 500 ships are still waiting to pass through the strait, which normally carries about one-fifth of global oil and liquefied natural gas supplies.