European Stocks Close Higher as Markets Monitor Iran War Developments
European equities ended Tuesday mostly in positive territory, while oil prices moved higher as investors continued to evaluate escalating tensions in the Middle East. This comes despite U.S. President Donald Trump’s decision to temporarily delay military strikes on Iranian energy infrastructure.
The pan-European Stoxx 600 index rose 0.5%. Among major markets, Germany’s DAX slipped slightly by 0.1%, France’s CAC 40 gained 0.2%, and the UK’s FTSE 100 advanced 0.6%.
Markets React to Mixed Signals from US and Iran
European stocks had already rebounded earlier in the week after Trump announced a five-day postponement of planned strikes, following what he described as “productive” discussions with Tehran.
However, Iranian officials rejected these claims, stating that no such negotiations were taking place and accusing the U.S. administration of attempting to calm volatile financial markets.
Strait of Hormuz Disruption Keeps Energy Markets on Edge
A key driver of market uncertainty remains the Strait of Hormuz, a critical oil transit route south of Iran. Roughly 20% of global oil supply flows through this narrow passage, which is currently facing severe disruptions.
Shipping companies have largely avoided the area due to the growing risk of attacks on vessels, further tightening global energy supply and supporting higher oil prices.
Oil Prices Remain Volatile Amid Supply Concerns
Energy markets have experienced sharp fluctuations in recent days. Oil prices surged to as high as $114 per barrel on Monday before falling back below $100 for the first time in nearly two weeks.
On Tuesday, Brent crude futures for May delivery rose again, gaining 3.1% to trade at $103.04 per barrel, reflecting ongoing uncertainty around supply disruptions.
Geopolitical Tensions Continue to Escalate
The situation in the Middle East remains highly unstable. Reports indicate that Iranian missile strikes have hit multiple locations in Israel, while additional drone and missile attacks have targeted Kuwait and Saudi Arabia.
At the same time, Israel has launched strikes against Iran-backed Hezbollah positions in Lebanon, further intensifying regional tensions.
Corporate Spotlight: Puig Shares Surge on Takeover Talks
In corporate news, cosmetics company Estee Lauder is reportedly in discussions to acquire Spanish firm Puig Brands. Following the report, shares of Madrid-listed Puig surged by more than 15%, highlighting strong investor interest in potential consolidation within the sector.
