US stock markets rose on Wednesday, while oil prices fell as hopes for a possible ceasefire with Iran resurfaced, improving investor sentiment in global financial markets.The S&P 500 rose 1.1% in early trading after the United States made proposals to Iran aimed at stopping the conflict. The Dow Jones Industrial Average was up 529 points, or 1.1%, at 9:35 a.m. Eastern time, while the Nasdaq Composite rose 1.3%, the AP reported.Global oil benchmark Brent crude fell 5.4% to $94.78 a barrel amid hopes that easing hostilities could smooth the flow of oil and natural gas from the Persian Gulf. The movement of oil tankers around the Strait of Hormuz has been disrupted, due to which Brent prices earlier reached near $120 a barrel.Despite the rally, markets remained volatile as uncertainty remained over the duration and trajectory of the conflict, which began with US and Israeli strikes on Iran more than three weeks ago. Financial markets have been volatile in recent weeks, with sentiment changing rapidly in response to geopolitical developments.Iran did not confirm receiving the US ceasefire offer and publicly rejected the diplomatic effort, even as new attacks on Israel and Gulf Arab states were launched. Military action against Iran also continued, while the US deployed additional paratroopers and Marines to the region.However, optimism was visible across global markets, with stock indices rising more than 1% in several regions, including London, Paris and Shanghai. Japan’s Nikkei 225 rose 2.9%.In the bond market, Treasury yields declined, potentially providing some relief for borrowing costs such as mortgages that had risen since the beginning of the conflict. The yield on 10-year US Treasuries fell to 4.33% from 4.39% late Tuesday, although it remained above the 3.97% level seen before the war began.Gold prices also improved and rose 3.5% to $4,558.10 an ounce. The metal touched levels around $5,400 this month, but higher Treasury yields diminished its relative appeal.On Wall Street, falling oil prices led to a rise in companies with higher fuel expenses. Norwegian Cruise Line Holdings rose 4.2%, while United Airlines gained 4%.Robinhood Markets jumped 7.1% after its board approved a program to return up to $1.5 billion to shareholders through stock buybacks.