U.S. stocks rallied, and the price of oil tumbled Monday on hopes that Iran will not disrupt the global flow of crude, something that would hurt economies worldwide but also its own, following the United States’ bunker-busting entry into its war with Israel.

The S&P 500 climbed 1%, coming off a week where stock prices had jumped up and down on worries about the conflict potentially escalating. The Dow Jones industrial average added 374 points, or 0.9%, and the Nasdaq composite gained 0.9%.

The price of oil initially jumped 6% after trading began Sunday night, a signal of rising worries as investors got their first chance to react to the U.S. bombings. But it quickly erased all those gains and swung to a sharp loss as the focus shifted from what the U.S. military did to how Iran would react.

By late Monday, the price of a barrel of benchmark U.S. oil had dropped 7.2% to settle at $68.51 after briefly topping $78. That brought it nearly all the way back to where it was before the fighting began over a week ago, when it was sitting just above $68.

Perhaps most importantly for financial markets, Iran’s retaliation did not seem to target the flow of oil.

In the bond market, Treasury yields eased after Fed Gov. Michelle Bowman said she would support cutting rates at the Fed’s next meeting in just a month, as long as “inflation pressures remain contained.”

The yield on the 10-year Treasury fell to 4.33% from 4.38% late Friday. The two-year Treasury yield, which more closely tracks expectations for the Fed, dropped to 3.84% from 3.90%.

On Wall Street, Elon Musk’s Tesla was the single strongest force pushing the S&P 500 higher after jumping 8.2%. The electric-vehicle company began a test run on Sunday of a small squad of self-driving cabs in Austin, Texas.

Hims & Hers Health tumbled 34.6% after Novo Nordisk said it will no longer work with the company to sell its popular Wegovy obesity drug. Novo Nordisk’s stock that trades in the United States fell 5.5%.

All told, the S&P 500 rose 57.33 points to 6,025.17. The Dow added 374.96 to 42,581.78, and the Nasdaq composite gained 183.56 to 19,630.97.

In stock markets abroad, indexes fell modestly across Europe after finishing mixed in Asia. France’s CAC 40 sank 0.7%, and Hong Kong’s Hang Seng rose 0.7% for two of the world’s bigger moves.

— Associated Press