According to sources, Iran aims to end the war and resume negotiations on its nuclear program, while Gulf nations are urging the U.S. to pressure Israel to prevent the conflict from escalating. This led to a significant rebound in the U.S. stock market on Monday, with all major indexes closing higher.
In recent days, fierce clashes have erupted between Iran and Israel, making Wall Street closely monitor the developments in the Middle East.

Reports from outlets like CNBC indicate that both nations have attacked each other's energy facilities, with Iran even threatening to close the Strait of Hormuz. However, a Middle Eastern diplomat noted that Iran has requested multiple countries, including Saudi Arabia, to urge President Trump to pressure Israel into an immediate ceasefire, conditional upon Iran showing flexibility in nuclear negotiations. This sparked optimistic market sentiment regarding a potential easing of tensions.

Krishna Guha, vice chairman of Evercore ISI, stated that the market feels reassured by the prospect of the conflict remaining in a “limited war mode.” However, as a precaution, he still expects the conflict to last several weeks, and the risk of escalation remains, which could impact the energy market and weigh on the U.S. economy.

As of the market close on the 16th, the Dow Jones Industrial Average rose by 317.30 points, or 0.75%, closing at 42515.09 points; the S&P 500 index gained 56.14 points, or 0.94%, closing at 6033.11 points; the Nasdaq index increased by 294.39 points, or 1.52%, finishing at 19701.21 points; and the Philadelphia Semiconductor Index rose by 155.05 points, or 3.03%, closing at 5267.30 points.