The Dow Jones Industrial Average bounced 0.9% to 49,736.85 minutes after trading started, while the broad-based S&P 500 added 0.8% to 7,314.21.

The tech-focused Nasdaq Composite Index rose 0.8% to 25,535.35.

US news outlet Axios reported that the US and Iran were close to agreeing on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations.

Early Wednesday, Trump said there was a proposal for the war to be “at an end” but said if Iran did not agree to conditions, it would face more intensive US attacks.

Oil prices dived on hopes that the conflict, triggered after US-Israeli strikes on Iran from Feb 28, would conclude soon.

Among individual companies, shares in chipmaker Advanced Micro Devices surged by around 20% on an upbeat outlook forecast.

“It looks as though we’re getting close to some sort of diplomatic resolution with the war,” said Peter Cardillo of Spartan Capital Securities.

“There’s a real build-up of enthusiasm in the market,” he added.