European stock markets moved higher at the open on Wednesday, while oil prices pulled back, after reports suggested a possible meeting between the United States and Iran could take place later this week.
At 08:06 GMT, the pan-European Stoxx 600 was up 1.3%. Germany’s DAX had risen 1.7%, France’s CAC 40 gained 1.4%, and the UK’s FTSE 100 advanced 0.9%.
According to The Wall Street Journal, mediators from Turkey, Egypt and Pakistan are working to organize discussions between U.S. and Iranian officials as early as Thursday.
Donald Trump is reportedly seeking a diplomatic path to end the conflict between joint U.S.-Israeli forces and Iran, which has been ongoing for nearly a month. Reports indicate Washington has presented Tehran with a 15-point peace proposal. Among the demands are the dismantling of Iran’s principal nuclear facilities and the reopening of the Strait of Hormuz, a critical shipping route south of Iran that has effectively been closed to tanker traffic for several weeks, pushing energy prices higher and raising concerns about inflation worldwide.
Iran, however, is said to have set strict conditions for entering negotiations, including the introduction of fees for ships passing through the strait. An Iranian military spokesperson also cast doubt on the possibility of a rapid resolution, stating that the U.S. is only “negotiating with” itself.
Earlier this week, Trump announced a five-day suspension of military strikes on Iranian energy infrastructure after what he described as “productive” discussions with Tehran. Iranian officials rejected this characterization, accusing Trump of inventing the talks to stabilize turbulent financial markets.
Hostilities have continued, with new attacks targeting facilities in U.S.-allied countries in the Persian Gulf. Trump’s openness to negotiations has reportedly unsettled some Gulf states, prompting Saudi Arabia and the United Arab Emirates to encourage Washington to continue military operations until Iran’s regional influence is reduced.
Nevertheless, the possibility of mediated talks between Washington and Tehran helped ease oil prices, which had surged in recent days compared with levels seen before the conflict.
Futures for Brent crude expiring in May — the global oil benchmark — were last down 4.8% at $99.50 per barrel.
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