US stocks rose toward their all-time high on Tuesday after oil prices eased further on hopes that Israel's war with Iran will not damage the global flow of crude. The S&P 500 climbed 1.1 per cent, following up on big gains for stocks across Europe and Asia, after President Donald Trump said late Monday that Israel and Iran had agreed to a "complete and total ceasefire." The main measure of Wall Street's health is back within 0.8 per cent of its record set in February after falling roughly 20 per cent below during the spring.

The Dow Jones Industrial Average jumped 507 points, or 1.2 per cent, and the Nasdaq composite rallied 1.4 per cent. The strongest action was again in the oil market, where a barrel of benchmark US crude fell 6 per cent to settle at USD64.37. Brent crude, the international standard, had a similar drop.

The fear throughout the Israel-Iran conflict has been that it could squeeze the world's supply of oil, which would pump up prices for gasoline and hurt the global economy. Iran is a major producer of crude, and it could also try to block the Strait of Hormuz off its coast, through which 20 per cent of the world's daily oil needs passes on ships.