Oil prices leaped, and stocks slumped on worries that escalating violence following Israel’s attack on Iranian nuclear and military targets could damage the flow of crude around the world, along with the global economy.

The rally came as oil prices retreated from recent highs amid reports that Iran seeks to de-escalate tensions with Israel.

Oil prices have risen in response to the Israel-Iran war, bringing them nearly back to the levels where they traded before the Liberation Day tariffs were announced on April 2. Oil stocks are trailing well behind.

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Stock futures were higher on Sunday as investors weighed the impact of the escalating Israel-Iran conflict that shows no signs of any potential off-ramps ahead. Oil prices rallied after Israel attacked key areas of Iran’s energy infrastructure over the weekend,

Relative calm returned to global markets, with stocks climbing and oil sinking alongside gold as fears subsided that Israel’s war against Iran would escalate into a wider conflict. News reports that Tehran wants to restart talks over its nuclear program also fueled risk-on sentiment.

U.S. stock index futures rose on Monday as easing oil prices boosted sentiment despite ongoing attacks between Israel and Iran, while investors focused on the upcoming Federal Reserve meeting. Wall Street indexes shed more than 1% on Friday as oil prices surged 7% after Israel and Iran traded air strikes,