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The U.S. was said to have sent Iran a peace plan via Pakistan on a day that the Iranians fired a torrent of missiles across the region.
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The 15-point plan was delivered via Pakistan, whose army chief has emerged as the key interlocutor between the United States and Iran, officials say.
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A significant storm will to move through the Middle East this week, with impacts expected from Israel to Qatar to Iran, forecasts show.
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Investors reacted to signals of possible de-escalation of the war in the Middle East.
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Israel will occupy southern Lebanon up to the Litani River to create a "defensive buffer," Defence Minister Israel Katz said on Tuesday, spelling out for the first time Israel's intent to seize territory amounting to nearly a tenth of Lebanon.
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