European equity markets moved higher at the open on Tuesday, tracking gains across Asian markets, after U.S. President Donald Trump indicated that the conflict involving Iran could conclude “very soon.”
As of 08:05 GMT, the pan-European Stoxx 600 index was up 1.8%. Germany’s Dax advanced 2.1%, France’s CAC40 gained 1.9%, and the UK’s FTSE 100 rose 1.4%.
Speaking at a press conference on Monday, Trump suggested that the U.S. military campaign in Iran could be nearing its end. However, he cautioned that attacks on Tehran could intensify if oil shipments were disrupted through the strategic Strait of Hormuz.
Iranian leaders, for their part, said they would continue their military response and warned they would not allow oil shipments to pass through the strait, a route used to transport roughly one-fifth of the world’s oil supply.
Oil prices, which swung sharply during the previous trading session as markets reacted to both escalation risks and hopes for de-escalation in the joint U.S.-Israeli offensive against Iran, moved lower.
At 04:06 ET, Brent crude futures, the international benchmark, were trading at $90.84 per barrel, while U.S. West Texas Intermediate crude fell to $86.54 per barrel.
Global government bond yields also edged lower, as the drop in oil prices helped ease concerns that a surge in crude costs could intensify inflationary pressures.
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