Earlier this week, many stock markets around the world fell sharply, with Stockholm down almost 5 percent.
But on Wednesday The New York Times reported that Iran had contacted the United States via secret intelligence channels - and the stock markets turned around.
Stockholm's broad OMXS index closed up 1.3 percent. Of the most traded stocks on the OMXS30 list, venture capital firm EQT and telecom operator Tele2 topped the list with gains of 4.5 and 2.9 percent, respectively.
Only four of the 30 largest shares fell. Mining equipment manufacturer Epiroc and tissue company Essity fared worst, down 1.6 and 1.2 percent respectively.
The surging oil price turned downward during the day. A barrel of North Sea oil now costs $81.32, down from $83.50 this morning. The price of gas on the European market also fell.
At the close in Stockholm, the Frankfurt Stock Exchange had risen 1.8 percent, the London Stock Exchange 0.7 percent and the Paris Stock Exchange 1 percent. In New York, all three major indices were clearly up.
The krona strengthened against both the dollar and the euro, which now trade at 9.17 and 10.66 kronor, respectively.
