Brent crude settled at $92.14 a barrel on Monday, its lowest close since late February, capping a three-week descent that has helped U.S. equities claw back the bulk of the losses triggered by the spring war between Iran and Israel.

The benchmark fell $1.38, or 1.5 percent, after another quiet weekend along the Strait of Hormuz and confirmation from the United Nations that the observer mission deployed after the April 15 ceasefire had logged no major incidents for nine straight days. West Texas Intermediate slipped to $88.30. Both contracts have now shed nearly a quarter of their value from the March peak near $125.

“The risk premium is being unwound in an orderly fashion, which is what you want to see,” said Marisol Vega, chief commodities strategist at Hartfield Capital in New York. “Traders aren’t pricing perfection, but they’re no longer pricing catastrophe either. That’s a meaningful shift.”

The slide in crude has fed directly into a broader rally on Wall Street. The S&P 500 added 0.6 percent on Monday to close at 5,742, leaving it less than 1 percent below the record it set on March 21, the day before Iranian missiles first struck the Negev. The Nasdaq Composite, lifted by a strong showing from semiconductor names, rose 0.9 percent. The Dow Jones Industrial Average advanced 142 points.

Treasury yields edged lower as energy-driven inflation fears continued to ebb. The 10-year note traded at 4.18 percent, down from 4.51 percent in the second week of April. Futures markets are now pricing roughly a 60 percent probability that the Federal Reserve will cut rates at its June meeting, up from 28 percent a month ago.

Earnings season has provided much of the fuel for the rebound. With about 78 percent of S&P 500 companies having reported, blended first-quarter earnings growth stood at 11.4 percent on Monday morning, according to LSEG data — well above the 7.9 percent analysts had forecast at the start of April. Revenue growth has come in at 5.8 percent.

The strongest beats have come from the megacap technology cohort. Apple, Microsoft and Nvidia all reported in late April, and each topped consensus estimates on both the top and bottom lines. Nvidia in particular surprised investors with a 62 percent jump in data-center revenue, briefly pushing the chipmaker’s market capitalization back above $3.6 trillion.

“Companies broadly absorbed the energy shock without the operating-margin damage people feared in mid-April,” said Daniel Okafor, head of U.S. equity research at Brightline Securities. “Logistics costs spiked, but the hit looks contained to one quarter for most sectors outside of airlines and chemicals.”

Airlines have remained the conspicuous laggard. Delta, United and American all reported sharp drops in transatlantic and Gulf-routing margins, citing higher jet fuel costs and rerouted flight paths during the war. Cargo carriers fared somewhat better, with FedEx reporting that Red Sea diversion costs began to taper in the final two weeks of April as shipping insurance premiums softened.

Insurance pricing has been one of the clearer barometers of normalization. The Joint War Committee, the London-based body that designates high-risk maritime areas, has not yet removed the Persian Gulf from its listed regions, but brokers said quoted war-risk premiums for Hormuz transits had fallen to roughly 0.35 percent of hull value, down from a peak above 1.2 percent in early April.

OPEC+ ministers, who agreed in Vienna on April 1 to an emergency production increase of about 1.5 million barrels per day, are scheduled to hold a virtual review meeting on May 18. Three delegates familiar with the preparations, who spoke on condition of anonymity because the discussions are private, said Saudi Arabia and the United Arab Emirates were leaning toward holding the higher output ceiling through the summer driving season before considering a partial rollback.

“The Saudis read the political climate in Washington pretty carefully right now,” said Layla Hassan, a Beirut-based regional analyst at Levant Strategy Group. “They don’t want to be seen tightening the market while the ceasefire is still being tested.”

Global markets followed Wall Street’s lead. Europe’s Stoxx 600 closed up 0.4 percent on Monday. London’s FTSE 100, weighed down by its heavy energy weighting, ended flat. In Asia, Japan’s Nikkei 225 added 0.8 percent in Tuesday morning trade, while Hong Kong’s Hang Seng was up 1.1 percent at midday.

The dollar continued to soften against a basket of major currencies, with the DXY index falling to 102.4, its lowest reading since mid-March. Gold, a major beneficiary of the war-risk trade, slipped to $2,318 an ounce, down nearly 9 percent from its April high.

Not every corner of the market is celebrating. Defense contractors, which surged in March and held most of their gains through April, have begun to give ground. Lockheed Martin, RTX and Northrop Grumman are each down between 4 and 7 percent over the past two weeks as analysts trim expectations for follow-on munitions reorders. A Citi note circulated to clients on Friday cut RTX’s price target by $18, citing what analyst John Reilly described as “a more orderly replenishment cycle than the war-peak modeling implied.”

Energy producers have also retreated. The S&P 500 Energy sector is down 11 percent from its April 2 high, though it remains the second-best performer year-to-date behind communication services. ExxonMobil, which reported a $9.1 billion quarterly profit on April 25, has fallen about 8 percent since the print.

Economists at Goldman Sachs published a note on Monday revising their year-end Brent forecast to $88 from $96, citing the OPEC+ supply addition, the resilience of U.S. shale output, and what the bank called a “credible glide path” for the ceasefire. The note cautioned, however, that a single significant violation along the Strait of Hormuz could quickly add $8 to $12 to the barrel.

Markets will turn this week to the April consumer price index, due Wednesday, and to a Federal Reserve speakers’ calendar that includes Chair Jerome Powell on Thursday afternoon. Officials said additional guidance on the timing of any rate move would likely wait for the June meeting.