U.S. stock markets are nearing recovery from losses incurred during the recent "Iran war," as a two-week ceasefire announced on Tuesday evening has spurred a "relief rally." The S&P 500 index is now less than 1% below its pre-war level of 6,878.88, with investors betting on the temporary nature of geopolitical shocks. Barclays strategists highlighted strong short covering as a key driver of the rebound, while investor confidence grows in President Trump's pursuit of an exit strategy to mitigate economic losses. Despite the stock market's recovery, crude oil prices remain high due to ongoing tensions in the Middle East, particularly around the Strait of Hormuz. The May-delivery West Texas Intermediate (WTI) crude futures contract approached $100 per barrel, significantly higher than the pre-war price of approximately $67. Citigroup strategists noted that while uncertainties persist, the ceasefire has positively shifted market sentiment, suggesting potential for further stock market gains if the ceasefire holds.