Late Sunday, U.S. stock futures climbed and crude oil prices slumped as President Donald Trump allowed diplomatic efforts with Iran to continue during a pause in hostilities, easing investor concerns over an immediate escalation in the Middle East.

Wall Street Rallies as Oil Retreats

Dow futures gained 266.00 points, or 0.51%, to 52,390.00, while S&P 500 futures advanced 48.25 points, or 0.65%, to 7,495.75. Nasdaq 100 futures rose 312.25 points, or 1.10%, to 28,594.50 as of around 9:53 p.m. EDT.

In commodities, WTI crude oil fell 4.61% to $85.19 per barrel, while Brent crude declined 4.30% to $92.62 per barrel. Natural gas futures dropped 2.19% to $2.808 per MMBtu.

Meanwhile, the U.S. dollar index, which tracks the greenback against a basket of currencies, stood at 101.132, down 0.33% on the day.

Asian markets were mixed, with South Korea's KOSPI falling 1.02% to 6,622.15, while Japan's Nikkei 225 edged up 0.12% to 64,685.90.

Trump Gives Diplomacy More Time

The market move came as strikes between the U.S. and Iran remained on hold following nearly two weeks of nightly military exchanges, giving diplomatic efforts room to advance.

"What the president is doing right now, as we've seen all along, is giving some talks some space," Mike Waltz, the U.S. ambassador to the UN, said during NBC's Meet the Press.

"Talks are ongoing. They're happening at every level, from the more technical aspect of it all the way to the highest levels."

However, he stressed that the U.S. military remained "locked and loaded" as negotiations continued and that Trump was "keeping all options on the table."

Waltz also told Fox News that diplomatic efforts had intensified "particularly in the past few days."

China-Backed Talks Gain Momentum

According to Reuters, Pakistan's effort to revive U.S.-Iran negotiations has China's backing.

"The Chinese are unhappy because Iran's attacks on other Gulf states and the closure of the Strait of Hormuz are hitting their interests," a Pakistani government official told the publication.

Despite the diplomatic push, Trump told Axios on Thursday that he was considering "a massive attack" on Iran, saying, "I am close to making a decision. We are all set for it."