U.S. Stocks Rise as Iran Says It Prepared a Two-Day Plan to Reopen Hormuz

U.S. stocks opened higher Monday as Brent crude fell more than 6.5% to $104.87 a barrel and Iran said it had prepared a two-day plan to reopen the Strait of Hormuz.

The S&P 500 rose 0.8% at the open, while the Nasdaq gained 1% and the Dow Jones Industrial Average advanced 1.1%. The gains recovered some of last week’s losses, when technology and artificial intelligence shares led declines. The S&P 500 remained 2.3% below its record high.

Brent crude, the international benchmark, fell to its lowest level since Oct. 16. The most actively traded Brent contract had ranged between $70 and $120 a barrel since just before the war began.

The drop in crude oil prices coincided with gains for transportation companies. United Airlines rose 6.5%, Southwest Airlines gained 4.2% and Carnival advanced 4.6% at the open.

Alphabet rose 2.4% at the open after falling more than 12% last Thursday. Its latest quarterly results showed the company used more free cash flow, while search growth came in below expectations.

Iranian diplomats urged the United States to pursue diplomacy to avoid a return to full-scale war.