Stocks surged and the US dollar and oil prices slid on Monday as the prospect of a deal ​to end the Iran war buoyed risk appetite, although a lack of clarity over when the Strait of Hormuz would open kept enthusiasm in check.The nearly three-month-long conflict ‌in the Middle East has driven energy prices sharply higher and reshaped the global rates outlook, as inflation concerns intensify following Tehran’s effective shutdown of the key strait.Several markets including in Britain and the United States were closed for public holidays. Oil prices hit two-week lows, with Brent crude ​futures down over $5, or about 4.9 per cent, to $98.45 a barrel, while US West Texas Intermediate was at $91.67 a barrel, also down about 4.9 per cent.Analysts expect oil prices to stay elevated even if there is a resolution in ‌the near ⁠term, and they are unlikely to return to levels before the war as it will take time to remedy supply chain disruption from the conflict.DUBLINThe Irish market started the week on a positive note, adding almost 2.6 per cent as banking shares climbed and construction stocks added value. The Iseq Overall Index closed at just under 13,337, climbing from the opening of 13,001. Ryanair continued the positive momentum it saw at the end of last week, with the stock adding almost 5 per cent over the day. Irish Continental Group saw more muted gains at just under 1 per cent higher. Kingspan also had a good day, adding almost 4 per cent to its stock, while home builders Glenveagh and Cairn also climbed. Banking shares rose on the day, with Bank of Ireland seeing a 2.1 per cent hike, and AIB adding 1.8 per cent. Kerry Group and Glanbia were also in positive territory, with the latter adding 0.6 per cent and Kerry gaining 0.7 per cent. The UK markets were closed for a public holiday. EUROPEThe pan-European Stoxx 600 climbed around 1 per cent to 631.1. Italy’s benchmark equity index rose past its all-time closing high set in 2000, with a recent rally in energy and chip stocks supercharging it to record levels.The FTSE MIB Index rose as much as 1.2 per cent to hit 50,121.2 points on Monday, above the previous record set 26 years ago. Italian stocks are up 11 per cent in 2026, following three consecutive years of gains.European stocks have hit several records in the post-pandemic era. The Euro Stoxx 50 and Germany’s DAX have set fresh highs this year, while Spain’s Ibex 35 reclaimed its record in October. Italy was the only major European market still to trade below its previous record.While banks were the main drivers of Italy’s outperformance last year, the hot photonics trade that has swept the globe is helping to boost this year’s top performer. STMicroelectronics, a chip supplier for Tesla and Apple, is up 156 per cent so far in 2026.The euro zone government bond market was on a tear, with Germany’s 10-year government bond yields hitting their lowest since April 8th, last down almost 10 basis points while Italy’s 10-year yields fell to their lowest since April 17th.US markets were closed on Monday for the Memorial Day holiday. – Additional reporting: Reuters, Bloomberg