European equity markets opened in positive territory on Tuesday and oil prices moved higher as investors monitored ongoing air strikes in the Middle East. The cautious optimism came despite U.S. President Donald Trump announcing a temporary pause in planned U.S. attacks on Iranian power plants.
By 08:04 GMT, the pan-European Stoxx 600 index was up 0.4%. Germany’s DAX had climbed 0.5%, France’s CAC 40 gained 0.5%, and the U.K.’s FTSE 100 advanced 0.4%.
European shares rebounded on Monday after Trump said the United States would delay strikes on Iranian energy infrastructure for five days following talks with Tehran that he described as “productive.” Iranian officials, however, rejected the claim that any such discussions had occurred and accused the U.S. president of making the statement in an attempt to calm unsettled financial markets.
Meanwhile, the Strait of Hormuz — the strategic channel south of Iran through which roughly one-fifth of global oil supply passes — remains largely closed to tanker traffic. Shipping companies have been reluctant to send vessels through the area amid fears that Iranian forces could target commercial ships.
The uncertainty has led to sharp volatility in oil markets. Prices surged to as high as $114 a barrel on Monday before retreating below $100 a barrel later in the session for the first time in around two weeks. On Tuesday, Brent crude futures for May, the international benchmark, were last up 1.2% at $101.11 per barrel.
According to the Wall Street Journal, citing Israeli military officials, new Iranian missile strikes have hit several locations in Israel. The newspaper also reported that Kuwait and Saudi Arabia have been targeted by drone and missile attacks, while Israel said it had carried out strikes against sites linked to Iran-backed Hezbollah in Lebanon.
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