European equity markets moved higher at the open on Wednesday, extending gains seen across global markets as investors balanced uncertainty surrounding U.S.-Iran peace negotiations with continued optimism linked to artificial intelligence-driven growth.
At 07:05 GMT, the pan-European Stoxx 600 index advanced 0.2%, while Germany’s DAX rose 0.4%. France’s CAC 40 also gained 0.4%, and the UK’s FTSE 100 added 0.1%.
Investors remain focused on diplomatic efforts aimed at ending the conflict between the United States and Iran, which has now lasted for nearly three months. The confrontation has effectively disrupted traffic through the Strait of Hormuz, pushing global energy prices higher and raising concerns over the broader economic outlook.
According to Al Jazeera, indirect discussions between Washington and Tehran have continued despite renewed exchanges of fire earlier this week.
Bank of Japan Governor Kazuo Ueda warned that the energy shock created by the conflict could have lasting economic consequences, while European Central Bank board member Isabel Schnabel stated that an interest rate increase at the ECB’s June meeting would still be justified even if a peace deal is reached.
Brent crude futures, the global benchmark for oil prices, were last down 2.1% at $97.52 per barrel. Although prices have retreated from recent highs above $100 a barrel, Brent remains significantly above pre-conflict levels near $70 per barrel.
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