Stocks surged on Wednesday as prospects rose for peace in two Middle East conflicts.

Pakistani mediators visited Tehran, pushing the US and Iran to hold a second round of peace talks and extend their ceasefire, which expires in less than a week.

Israel’s security cabinet, meanwhile, discussed a possible Lebanon truce, following six weeks of war against ‌Hezbollah.

Investors are hopeful: The S&P 500 and Nasdaq Composite both closed at all-time highs Wednesday, despite the Strait of Hormuz remaining effectively closed.

The US’ small business czar told Semafor World Economy that high oil prices are a “short-term necessary exercise to achieve the objective of long-term stability.”