NEW YORK: Wall Street stocks rose and oil retreated from highs above $100 a barrel on Monday as the U.S. said it continued to engage with Tehran to make a deal even as it blocked Iran's ports after the collapse of peace talks over the weekend.

A fragile ceasefire that halted six weeks of U.S. and Israeli air strikes still hung in the balance. President Donald Trump said 34 ships had passed through the Strait of Hormuz, which handles about 20% of global oil and liquefied natural gas flows. Stocks firmed during the day's trading, reversing earlier losses, although volume was light.

By Monday's close, the S&P 500 had erased all the losses it racked up since the war started. The blue chip index gained 1.02%, to end at 6,886.24, 0.1% above its February 27 finish.

The Dow Jones Industrial Average rose 0.63%, to 48,218.25 and the Nasdaq Composite gained 1.23%, to 23,183.74.

"There seems to be some desensitization around these back and forth talks with negotiations on, negotiations off, especially in the midst of this ceasefire, which seems to be holding for the moment," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

Investors fear "that if we have a resolution come together quickly, that the market could rally significantly and they'd be left on the sidelines," Luschini added.