Hopes for a possible diplomatic pause in the war with Iran lifted stock markets on Wednesday, while oil prices declined. The Standard and Poor's 500 index rose 0.5 percent after the United States delivered a plan to pause the conflict, and the Dow Jones Industrial Average and the Nasdaq composite also posted solid gains. Markets remained volatile, however, as uncertainty over the war's duration continued to drive sharp swings.

Iran signaled no immediate shift in its stance, with its foreign minister saying there were no talks underway to end the war. Fighting persisted across the region, including new attacks involving Israel and Gulf Arab countries, while the United States increased its military presence. Despite that, global markets showed optimism, with major indexes in Europe and Asia rising strongly.

Oil prices fell as investors bet that a de-escalation could ease disruptions to energy shipments from the Persian Gulf. Brent crude dropped 3 percent after earlier surging near 120 dollars per barrel amid tanker blockages near the Strait of Hormuz. Treasury yields also declined, potentially easing pressure on borrowing costs, and gold prices rebounded after earlier losses tied to rising bond yields and inflation concerns.