Wall Street hits record highs

The S&P 500 breached the 7,000-point milestone for the first time, erasing all losses incurred since the conflict began in February.

Optimism surrounding a potential ceasefire extension and the reopening of the Strait of Hormuz has led traders to look past immediate geopolitical risks.

Bank of America and Morgan Stanley both reported record trading revenues, benefiting from the same volatility that has rattled global supply chains.

However, some policymakers and the IMF have cautioned that markets may be underestimating the long-term economic damage and inflationary pressures caused by the war.