ISTANBUL

US stocks closed with gains Monday as investors seemed to begin to recover from the shock of the start of the Israel-Iran conflict.

The Dow Jones Industrial Average was up 0.75%, or 317.30 points, to close at 42,515.09.

The Nasdaq Composite gained 1.52% to finish at 19,701.21 and the S&P 500 rose 0.94% to 6,033.11.

Regional tensions in the Middle East have escalated since Friday, when Israel launched coordinated airstrikes on multiple sites across Iran, including military and nuclear facilities, prompting Tehran to launch retaliatory strikes.

The conflict wreaked havoc on global markets, with Brent crude oil rising around 11% and gold pushing past the $3,450 level.

While the conflict between Iran and Israel continued, the fact that Iran did not close the Strait of Hormuz, contrary to expectations, and oil prices partially retreated, falling 2.27% on Monday, supported the markets.

Israeli authorities said at least 24 people have been killed and hundreds injured in Iranian missile attacks since Friday.

Iran said at least 224 people have been killed and over 1,000 others wounded in the Israeli assault.

Meanwhile, US President Donald Trump gave positive remarks regarding his trade policy, saying that a trade deal with Canada is "achievable."

Trump said the neighbors are currently divided over which "concept" to adopt to end the trade dispute and added that US and Canadian delegations would attempt to "get to the bottom of it today."

"I'm a tariff person. I've always been a tariff person. It's simple, it's easy, it's precise, and it just goes very quickly. And I think Mark has a more complex idea, but also very good," Trump told reporters in Canada where he was being hosted by Canadian Prime Minister Mark Carney on the summit's sidelines.

"It's achievable. Both parties have to agree."

Meanwhile, investors will be focusing on the decisions of the Fed's Federal Open Market Committee (FOMC) meeting, which will be announced Wednesday, while the central bank is expected to keep the policy rate unchanged.

Analysts said that investors will look for more clues about the future of monetary policy in Fed Chair Jerome Powell's statements as well as the economic projections that the Fed will announce after the meeting.

The VIX index, commonly known as the "fear index," fell 8.21% to 19.11 points after climbing to levels above 21 on Friday after Israel's strikes on Iran.