NEW YORK — U.S. financial markets are responding positively to a pause in fighting between the United States and Iran, with stocks climbing and oil prices falling sharply as investors reassess the risk of a wider disruption to global energy supplies.

The latest market move has provided relief to businesses and consumers concerned about higher fuel costs and renewed inflationary pressure. Brent crude fell more than 6% on Monday, while U.S. crude also dropped significantly as traders reacted to reduced fears surrounding energy routes in the Middle East.

U.S. stock futures moved higher, with technology shares among the strongest performers. The market rebound reflects renewed investor confidence that lower energy prices could reduce some of the inflation pressure facing the American economy.

Attention is now shifting toward the Federal Reserve's upcoming policy meeting, where investors are looking for clues about the future direction of U.S. interest rates. Markets are also preparing for a busy earnings period, with roughly one-third of S&P 500 companies expected to report results. Analysts are forecasting strong overall earnings growth.

The decline in oil prices could prove particularly important for American businesses. Lower transportation and energy costs can reduce operating expenses for manufacturers, airlines, logistics companies and retailers while potentially easing pressure on household budgets.

However, investors remain cautious because the geopolitical situation can change quickly. A renewed escalation could push energy prices higher again and revive concerns about inflation, interest rates and economic growth.

For now, the combination of lower oil prices, rising stocks and reduced immediate geopolitical risk is giving Wall Street a welcome boost as investors enter a critical week for U.S. monetary policy and corporate earnings.