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European Stocks Rise as U.S.-Iran Peace Deal Hopes Lift Market Sentiment

European Stocks Rise as U.S.-Iran Peace Deal Hopes Lift Market Sentiment. Source: Image by Steinar Hovland from Pixabay

European stock markets opened higher on Monday as investors reacted positively to reports suggesting the United States and Iran may be moving closer to a peace agreement. The prospect of easing geopolitical tensions helped boost risk appetite across major European indices and pushed oil prices lower.

By 03:05 ET, or 07:05 GMT, the pan-European Stoxx 600 was up 0.6%, supported by broad gains across regional markets. Germany’s DAX advanced 1.0%, France’s CAC 40 rose 0.9%, while the U.K.’s FTSE 100 added 0.2%.

Market optimism increased after reports over the weekend said Washington and Tehran had reached an agreement in principle to end a conflict that has lasted more than two months. The reports cited a senior White House official, although a formal announcement has not yet been made.

A key part of the potential U.S.-Iran peace deal would reportedly include reopening the Strait of Hormuz, a critical shipping route near Iran’s southern coast. The waterway is one of the world’s most important oil transit points, with around one-fifth of global crude flows passing through it. Its closure to much of tanker traffic in recent weeks has pushed energy prices higher and raised concerns about inflation worldwide.

Brent crude futures fell 4.3% to $95.90 a barrel as traders priced in the possibility of improved oil supply conditions. However, Brent prices remain above levels seen before the conflict began in late February.

Uncertainty remains over the timing and details of any final agreement. Issues surrounding Iran’s nuclear ambitions are still being discussed, while Iranian leaders are expected to take time before approving a framework deal.

U.S. President Donald Trump said on social media that he had instructed his representatives not to rush negotiations. He added that a U.S. blockade on Iranian ports would remain until an agreement is reached, certified, and signed.

In corporate news, Delivery Hero shares surged to an 18-month high after the German food delivery company confirmed it had received an indicative takeover offer from Uber.

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