India, March 4 -- Wall Street climbed on renewed optimism that diplomatic channels may ease tensions surrounding the escalating conflict involving Iran, even as energy markets signaled that geopolitical risk remains firmly embedded in global pricing.

The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite each advanced in early trading, reversing part of the sharp losses triggered earlier this week. The rebound on renewed optimism came alongside stronger-than-expected US labor data, reinforcing the narrative that the American economy remains resilient despite intensifying geopolitical stress.

Markets are now moving at the intersection of two powerful forces: the specter of wider war in the Middle East and a domestic eco...