U.S. stocks rebounded Monday as investors brushed off fears that U.S.-Israel strikes on Iran would significantly disrupt oil supplies.

The S&P 500 rose 3 points to 6,882, the Nasdaq gained 0.4%, and the Dow slipped 0.2% after recovering from earlier losses.

Oil prices surged, with Brent crude jumping over 6% to $77.74 per barrel and West Texas Intermediate rising 6.3% to $71.23.

Analysts warned the escalating conflict could threaten shipments through the Strait of Hormuz, a key route for about 20% of global oil supply, CBS News has reported.

Market watchers said uncertainty around energy prices could heavily influence investor sentiment in the coming days.