The market finally caught a little breath this week… and oil was the reason why.

Stocks pushed higher after Axios reported that U.S. and Iranian negotiators may have reached a 60-day agreement to extend the ceasefire and continue talks around Iran’s nuclear program. The S&P 500 climbed about 0.5%, the Nasdaq hit fresh all-time highs, and traders immediately rotated back into some of the more aggressive growth and discretionary names. But underneath the rally, you could still feel the hesitation. The White House later pushed back on the report entirely, calling the memorandum story “a complete fabrication.” It was another reminder of just how quickly geopolitical headlines are moving both oil and markets right now.

Because this story was never really about diplomacy alone. It was about crude oil. Earlier in the week, prices surged after renewed military strikes and fears surrounding the Strait of Hormuz, the narrow shipping route responsible for moving roughly 20% of the world’s oil supply. Brent crude briefly traded near $95 per barrel while West Texas Intermediate climbed above $89 before both reversed sharply lower on hopes that tensions may cool. In fact, one comment from Secretary of State Marco Rubio saying the U.S. would give negotiations “every chance to succeed” helped send oil tumbling more than 5% in a single session.

That decline in oil helped unlock relief across the broader market. Lower energy prices immediately ease pressure on transportation, manufacturing, consumer spending, and inflation expectations. And speaking of inflation, the latest PCE report added another small layer of encouragement, showing monthly inflation rising 0.4%, slightly cooler than economists expected, while the annual number held at 3.8%. Still above the Fed’s target? Absolutely. But in this environment, investors were willing to take “less bad” as good enough.

And honestly, that may be the biggest shift happening underneath the surface right now. Markets are no longer demanding perfect conditions. They are responding to reduced pressure. Less escalation. Less inflation fear. Less stress on oil. The rally this week was not built on explosive growth or groundbreaking economic data. It was built on the possibility that one of the market’s biggest pressure points may finally be cooling off.

For now, Wall Street is trading one simple idea: cooler oil, cooler pressure.