-- US equity indexes rose on Thursday while crude oil futures pared gains amid expectations that a Pakistan-brokered ceasefire deal with Iran will hold until further negotiations in Islamabad to end the war.
The Nasdaq Composite rose 0.8% to 22,822.42, with the S&P 500 up 0.6% to 6,824.66 and the Dow Jones Industrial Average higher by 0.6% to 48,185.80, extending gains following a strong rally on Wednesday.
The UK's ITV network reported that Iran's Deputy Foreign Minister Saeed Khatibzadeh said the Strait of Hormuz is open. Any civilian vessel can pass with guidance from the Iranian authorities, Khatibzadeh told ITV. "Anybody who communicates with the Iranian authority has permission to pass."
Eight ships crossed Hormuz on Thursday, below the usual 135 daily transits, The Wall Street Journal reported.
The two-week truce appears to be holding up as fewer strikes were reported across the Middle East on Thursday, CNN reported. Israel's attacks on Lebanon killed more than 250 people while injuring hundreds on Wednesday, according to Reuters.
Further, Netanyahu's plan for talks with Lebanon to disarm the militant group reportedly fighting as Iran's proxy addressed concerns raised by Iranian President Masoud Pezeshkian. Tel Aviv's strikes on Lebanon violated the truce deal and, more importantly, would render the upcoming US-Iran peace negotiations in Islamabad meaningless, Reuters cited Pezeshkian as saying.
Netanyahu said Israel is planning direct negotiations with Lebanon to establish peaceful relations, but added there is no ceasefire while talks are being pursued, CNN reported.
Vice President JD Vance will lead US negotiators in talks with Iran in Islamabad on Saturday, according to media reports. Trump reportedly told NBC News that he was "very optimistic" about reaching a peace deal with Iran, but warned that "if they don't make a deal, it's going to be very painful."
West Texas Intermediate crude oil futures were up 4.7% to $98.88, after surging more than 7% higher earlier in the session. Brent crude futures rose 2.4% to $97.01, after climbing almost 5% intraday.
Most US Treasury yields fell, with the two-year declining 1.5 basis points to 3.78%. The 10-year was little changed at 4.28%.
In economic news, the personal consumption expenditures price index rose by 0.4%, and as expected, the year-over-year rate remained at 2.8%. The price index increased by 0.3% month-over-month in January.
The core PCE price index increased by 0.4%, as expected, and the same as in January. The year-over-year rate dropped to 3% from 3.1% in the previous month.
US economic growth, measured by gross domestic product, was revised lower to a 0.5% increase in Q4 from a 0.7% gain in the second estimate, compared with estimates for no revision in a survey compiled by Bloomberg.
US initial jobless claims rose to 219,000 in the week ended April 4 from an upwardly revised 203,000 in the previous week, compared with expectations for 210,000 in a Bloomberg-compiled poll.
In precious metals, gold futures rose 0.4% to $4,794.4 and silver futures climbed 0.5% to $75.79.