U.S. equities pushed deeper into positive territory for the year Monday as Brent crude broke beneath $90 a barrel for the first time since the Iran war began, with traders citing steady ceasefire compliance in the Gulf and a flood of upbeat first-quarter earnings out of the tech and industrial sectors.

The S&P 500 climbed 0.7 percent by midday in New York to 5,624, putting the benchmark within 1.2 percent of where it stood on Feb. 28, the day before Israeli and Iranian forces exchanged opening salvos. The Nasdaq Composite added 1.1 percent, paced by Nvidia and Microsoft, while the Dow Jones Industrial Average advanced 0.4 percent. In Europe, the Stoxx 600 closed 0.9 percent higher. Tokyo’s Nikkei 225 had earlier finished up 1.3 percent.

Brent for July delivery settled at $89.40 a barrel in London, down $1.85 on the session and off roughly 28 percent from its March 24 peak of $124.60. West Texas Intermediate traded at $85.20. The decline came after weekend monitoring reports from the UN observer mission at the Strait of Hormuz logged a third consecutive week without serious incident, and after Saudi Aramco confirmed that May liftings from Ras Tanura had returned to pre-war volumes.

“The risk premium that built up between March and mid-April is bleeding out of the curve faster than most desks expected,” said Hannah Whitford, head of commodities strategy at NorthBridge Capital in London. “What you’re watching now is a market that has essentially priced the ceasefire as durable through the summer driving season. If anything, the bigger question for the back half is demand, not supply.”

OPEC+ delegates meeting informally in Vienna last week signaled they were prepared to revisit the 1.5-million-barrel-per-day production increase announced on April 1, with Saudi Arabia and the United Arab Emirates pushing back against Russian and Iraqi calls for an immediate trim. A formal review is scheduled for early June.

Earnings have done much of the heavy lifting for U.S. shares. With roughly 88 percent of the S&P 500 having reported, blended first-quarter profit growth is tracking at 11.4 percent year over year, according to data compiled by Bridgepoint Analytics, well above the 7.9 percent forecast carried into the season. Apple, Microsoft and Nvidia all topped consensus estimates last month, and the cohort of “Magnificent Seven” names is now up an average of 6.2 percent since the April 15 ceasefire took effect.

“You had two shocks layered on top of each other in March — the war and a tightening in financial conditions — and now both are unwinding at the same time,” said Marcus Delgado, chief U.S. equity strategist at Avenir Securities. “Buybacks are coming back. Forward guidance from the megacaps was, on balance, more confident than people feared.”

Treasuries sold off modestly, with the 10-year yield rising three basis points to 4.21 percent. Federal funds futures continued to imply roughly one quarter-point rate cut by year-end, with traders pulling forward the odds of a September move to about 55 percent from 48 percent a week earlier. The dollar index slipped 0.3 percent, and gold eased to $2,388 an ounce as haven flows continued to reverse.

Not every corner of the market is celebrating. Defense contractors, which surged during the war, have given back gains. Lockheed Martin shares are down 8 percent over the past three weeks; RTX is off 6 percent; Northrop Grumman has shed 5 percent. Shipping names tied to Red Sea reinsurance premiums, including Maersk and Hapag-Lloyd, have also retreated as rates normalize.

Insurers reported the first meaningful drop in war-risk surcharges on Gulf-bound tankers since February. Lloyd’s of London syndicates have begun quoting policies for transits through the Strait of Hormuz at 0.45 percent of hull value, down from a wartime peak of 1.8 percent, according to broker estimates relayed by the Baltic and International Maritime Council.

“The reinsurance market always overshoots in both directions,” said Tomasz Borowski, a marine underwriter at Helvetia Re in Zurich. “We are now in the give-back phase. But rates will not return to pre-March levels until at least the fall, and any sporadic incident — a stray drone, a single mine — could reset the curve overnight.”

Currency markets reflected the same cautious optimism. The Israeli shekel strengthened 0.4 percent against the dollar to 3.59, its firmest level since January. The Iranian rial, which trades on a managed and heavily restricted basis, continued to slide on Tehran’s parallel market, with brokers in the capital quoting roughly 612,000 to the dollar — a record low and a reminder of the economic toll the war has imposed on the Islamic Republic.

Asian growth indicators have also begun to firm. China’s April export data, released over the weekend, came in 4.1 percent above the prior year, and South Korea reported a 6.3 percent gain in semiconductor shipments. Both readings exceeded analyst expectations and helped lift the MSCI Asia ex-Japan index by 0.8 percent.

In Washington, Treasury Secretary Caroline Whitfield told reporters Monday morning that the administration was “monitoring energy markets closely” and remained committed to refilling the Strategic Petroleum Reserve at “opportunistic levels” through the summer. The reserve, which was drawn down by roughly 38 million barrels during the conflict, currently stands at 351 million barrels.

Traders said attention would shift this week to April retail sales data on Thursday and Walmart’s first-quarter results on Friday for fresh signals on the U.S. consumer. Federal Reserve Chair Jerome Powell is scheduled to speak at the Economic Club of New York on Wednesday, his first public remarks since the conclusion of last month’s policy meeting.

Whitford said her desk was advising clients to begin “rotating modestly” out of the energy and defense names that had outperformed through the war and back into cyclicals and selected emerging-market equities. “The trade now,” she said, “is the recovery, not the conflict.”