European stock markets traded higher at Tuesday’s open as investors reacted positively to signs that the United States and Iran could be moving closer to a peace agreement.
At 07:05 GMT, the pan-European Stoxx 600 index was up 0.3%, while Germany’s DAX advanced 0.7%. France’s CAC 40 gained 0.3% and the UK’s FTSE 100 added 0.4%.
U.S. President Donald Trump said he had decided against launching renewed attacks on Iran, while Iranian officials indicated that a fresh peace proposal had been submitted to Washington.
The conflict between the U.S. and Iran has continued since late February. Although a fragile ceasefire has remained in place for longer than the initial phase of bombardments across the Middle East, efforts to secure a lasting resolution have so far failed, leaving both sides locked in an extended standoff.
A major concern for markets remains the Strait of Hormuz, which has effectively been disrupted for weeks due to U.S. and Iranian naval blockades. The situation has severely affected global oil shipments and pushed crude prices sharply above levels seen before the conflict began. Around 20% of global oil supply passes through the strategic waterway along Iran’s southern coastline.
Brent crude futures, the international oil benchmark, were last down 1.5% at $110.47 per barrel. Prior to the outbreak of the conflict, Brent had been trading near $70 a barrel.
Investors continue to worry that a prolonged energy shock linked to the conflict could fuel global inflation and force central banks to keep interest rates higher for longer.
Despite geopolitical uncertainty, equity market sentiment continues to be supported by strong enthusiasm surrounding artificial intelligence. That optimism could face an important test later this week when U.S. chipmaker Nvidia (NASDAQ:NVDA) publishes its latest financial results.
Leave a Reply