Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com - European stocks closed mostly higher on Tuesday, while oil prices crept up, as investors assessed ongoing air strikes in the Middle East despite U.S. President Donald Trump’s announcement of a temporary delay to U.S. military attacks on Iranian power plants.
The pan-European Stoxx 600 index gained 0.5%, the Dax in Germany slipped 0.1%, the CAC 40 in France had ticked up 0.2%, and the FTSE 100 in the U.K. rose 0.6%.
On Monday, European shares bounced after Trump said he would postpone strikes on Iranian energy infrastructure for five days in the wake of talks with Tehran that he described as “productive.” However, Iranian officials denied that any such conversations were taking place, and accused the president of making the claims to help soothe volatile markets.
Crucially, the Strait of Hormuz, a vital waterway south of Iran through which a fifth of the world’s oil squeezes, remains effectively closed to tanker traffic. Container shipping companies, worried about the prospect for potential Iranian attacks on vessels, have largely held off on allowing ships to traverse the strait.
Oil prices have fluctuated wildly as a result, jumping as high as $114 a barrel on Monday, but later sliding back below $100 a barrel for the first time in roughly two weeks. On Tuesday, the futures contract expiring in May for Brent crude, the global oil benchmark, were last higher by 3.1% at $103.04 a barrel.
Fresh Iranian missiles have hit several locations in Israel, according to the Wall Street Journal, citing Israeli military officials. Meanwhile, the WSJ said Kuwait and Saudi Arabia have been targeted by drone and missile strikes, while Israel said it had struck targets linked to Iran-backed Hezbollah in Lebanon.
In individual stocks, the Wall Street Journal reported that cosmetics giant Estee Lauder is in discussions to purchase Spanish peer Puig Brands. Madrid-listed shares of Puig surged by more than 15% following the report.
