US stock futures were largely steady on Monday evening after a rally driven by hopes of a potential diplomatic breakthrough between the US and Iran.

Futures linked to the S&P 500 (ES=F) edged up 0.1%. Contracts on the Dow Jones Industrial Average (YM=F) hovered just above the baseline and Nasdaq 100 futures gained 0.2%.

Despite the collapse of weekend negotiations between Washington and Tehran, where Trump issued a blockade against all ships in the Strait of Hormuz, markets showed notable resilience. Equities climbed at the start of the week, signaling that traders are still betting peace talks can occur. Trump has since claimed that Iran has reached out “to work out a deal.”

The rebound effectively wiped out losses the S&P 500 had accumulated since the onset of the Iran conflict.

Energy markets told a different story. Oil prices surged as tensions escalated, with the US initiating a blockade in the Strait of Hormuz. West Texas Intermediate (CL=F) crude jumped 2.6% to settle at $99.08 per barrel, while Brent (BZ=F) crude climbed more than 4% to $99.36.

Looking ahead, attention turns to earnings season. Major banks including Bank of America (BAC), Wells Fargo (WFC), Citigroup (C), JPMorgan Chase (JPM), and Morgan Stanley (MS) all report this week, offering key insight into the health of the financial sector.