European Stocks Edge Higher on US-Iran Peace Talk Optimism
European stock markets traded mostly higher on Thursday as investors reacted to reports suggesting the United States and Iran are working toward restarting negotiations aimed at ending the ongoing conflict.
Investor sentiment improved after fresh signs of diplomatic progress raised hopes that tensions in the Middle East could begin easing in the coming weeks.
Major European Indexes Trade Mixed
The pan-European STOXX gained 0.1% during early trading hours.
Germany’s DAX also edged 0.1% higher, while France’s PX1 climbed 0.4%.
The weakest performer among major regional indexes was the United Kingdom’s UKX, which slipped 0.3%.
US and Iran Reportedly Preparing New Talks
According to reports, Washington and Tehran have been working with international mediators on a one-page framework designed to restart formal peace negotiations.
The Wall Street Journal reported that discussions could begin next week in Pakistan.
The proposed diplomatic process would reportedly continue for around one month and focus on resolving disputes tied to Iran’s nuclear program and the possible easing of sanctions.
However, several major disagreements reportedly remain unresolved, including issues surrounding uranium enrichment and international inspections.
Trump Signals Conflict Could End Soon
President Donald Trump recently suggested that the U.S. military operation against Iran, launched jointly with Israel in late February, could end if Tehran accepts previously discussed conditions.
Markets interpreted the comments as another sign that diplomatic progress may be accelerating.
Wall Street and Oil Markets React Strongly
U.S. stock markets rallied sharply on Wednesday after investors grew increasingly optimistic that the conflict could move toward resolution.
At the same time, oil prices dropped significantly as traders welcomed the possibility of commercial tanker traffic resuming through the Strait of Hormuz.
The strategic waterway, located along Iran’s southern coast, handles roughly 20% of global crude oil shipments and has remained heavily disrupted during much of the conflict.
Brent Crude futures fell another 3.7% on Thursday, trading near $97.92 per barrel.
