European equities traded in a narrow range on Wednesday, as investors weighed fresh signals from Washington suggesting a renewed push toward ending the conflict with Iran.
By 07:09 GMT, the pan-European STOXX 600 was marginally higher by 0.1%, while Germany’s DAX and the UK’s FTSE 100 each gained around 0.2%.
France’s CAC 40 underperformed, falling 0.6%, dragged lower in part by a sharp decline in Hermès (EU:RMS), which reported slower quarterly sales growth amid weaker demand linked to the Iran conflict.
Market sentiment found some support from ASML (EU:ASML), Europe’s most valuable listed firm. The company raised its full-year sales outlook, benefiting from strong demand tied to the artificial intelligence boom. Major chipmakers, including TSMC and Intel, continue to invest heavily in ASML’s technology to expand their AI capabilities.
On the geopolitical front, U.S. President Donald Trump indicated that talks with Iran could resume within the next two days, following initial negotiations held in Pakistan over the weekend. Vice President JD Vance, who led the U.S. delegation in Islamabad, also struck an optimistic tone regarding progress.
Despite this, the U.S. has maintained a blockade on Iranian ports. Officials said maritime trade to and from the country has effectively been halted after the latest round of talks failed to deliver an immediate ceasefire agreement, although expectations for a quick resolution had already been low.
The restrictions have raised concerns about oil supply disruptions through the Persian Gulf, where flows have already slowed significantly. However, reports suggest that more than 20 commercial vessels have recently passed through the Strait of Hormuz, hinting at some easing in transit conditions.
Oil prices remained below the $100 mark but stayed elevated compared with pre-conflict levels. Brent crude rose 0.3% to $95.10 a barrel, while U.S. West Texas Intermediate slipped 0.2% to $91.12.
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