Optimism rises on Iran, Lebanon diplomacy

Stocks surged on Wednesday as prospects rose for peace in two Middle East conflicts.

Pakistani mediators visited Tehran, pushing the US and Iran to hold a second round of peace talks and extend their ceasefire, which expires in less than a week.

Israel’s security cabinet, meanwhile, discussed a possible Lebanon truce, following six weeks of war against ‌Hezbollah.

Investors are hopeful: The S&P 500 and Nasdaq Composite both closed at all-time highs Wednesday, despite the Strait of Hormuz remaining effectively closed.

The US’ small business czar told Semafor World Economy that high oil prices are a “short-term necessary exercise to achieve the objective of long-term stability.”