European Stocks Mixed as Markets Monitor Iran War Developments
European equities showed mixed performance on Wednesday, as investors closely followed signals from the United States suggesting a potential end to the ongoing conflict with Iran.
By mid-session, the Stoxx Europe 600 declined by 0.4%. Germany’s DAX rose slightly by 0.2%, while the UK’s FTSE 100 slipped 0.2%.
Luxury Sector Weighs on French Markets
France’s CAC 40 dropped by 0.7%, pressured by weakness in the luxury goods sector. Shares of Hermès declined sharply after reporting slower quarterly sales growth, impacted by reduced demand linked to the Iran conflict.
Other major luxury players also faced declines. Kering fell after weak sales at its flagship brand Gucci, while LVMH continued to show soft performance. These results have dampened expectations for a near-term recovery in Europe’s luxury sector.
ASML Boosts Sentiment with AI-Driven Outlook
Despite broader market caution, sentiment received support from ASML, Europe’s largest company by market capitalization. The firm raised its annual sales forecast, benefiting from strong demand driven by the artificial intelligence boom.
ASML’s clients include major chipmakers such as TSMC and Intel, which are investing heavily in AI infrastructure and advanced semiconductor production.
Trump Signals Renewed Iran Talks
Donald Trump indicated that negotiations between the United States and Iran could resume within the next two days, following initial discussions held in Pakistan over the weekend.
JD Vance, who led the U.S. delegation, expressed optimism regarding progress in the talks, suggesting that a diplomatic solution may still be achievable.
Ongoing Blockade and Oil Market Concerns
However, tensions remain elevated. The U.S. has continued enforcing a naval blockade on Iranian ports, effectively restricting maritime trade. This move came after initial negotiations failed to deliver a permanent ceasefire agreement.
Concerns over global oil supply persist, particularly around the Strait of Hormuz—a critical route for global energy shipments. While disruptions have slowed flows, recent reports indicate that more than 20 commercial vessels have successfully passed through the strait, signaling some improvement.
Oil Prices Remain Elevated
Oil prices remained below the $100 per barrel mark but stayed significantly above pre-conflict levels. Brent crude rose 0.3% to $95.10 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped 0.2% to $91.12 per barrel.
