Key Takeaways

• Broad-based gains: The Stoxx 600 rose 0.3%, Germany’s DAX climbed 0.7%, France’s CAC 40 added 0.3%, and the U.K.’s FTSE 100 gained 0.4%.
• Trump cancels strikes: The president said he had called off renewed attacks on Iran.
• New Iran proposal: Tehran officials reportedly sent out a fresh peace proposal.
• Ceasefire holds despite tensions: A prolonged, albeit fragile, truce has been in effect for longer than the initial bombing phase.
• Lasting peace elusive: Both sides remain stuck in a protracted stalemate after months of war.
• Hormuz still blocked: Both U.S. and Iranian blockades continue to shutter the vital waterway.
• Brent retreats: Crude fell 1.5% to $110.47 per barrel, though still well above the pre-war $70 level.
• 20% of global oil affected: Hormuz handles roughly a fifth of the world’s crude shipments.
• Inflation fears persist: Worries continue that the energy shock could spark a global inflation wave.
• Nvidia earnings test: The AI giant’s report this week could determine whether the massive investment boom can continue.

European stocks opened higher on Tuesday, buoyed by hopes that a peace deal between the United States and Iran may be possible.

By 03:05 ET (07:05 GMT), the pan-European Stoxx 600 had risen 0.3%, Germany’s DAX had climbed 0.7%, France’s CAC 40 had gained 0.3%, and the U.K.’s FTSE 100 was up 0.4%.

Trump Pulls Back from the Brink

U.S. President Donald Trump said he had called off carrying out renewed attacks on Iran, while Tehran noted that its officials had sent out a new peace proposal.

The U.S. and Iran have been at war since late February, although a prolonged, albeit fragile, ceasefire has been in effect for a longer period of time than the initial phase of bombardments on regions across the Middle East. Still, forging a lasting peace has proven elusive, leaving both sides stuck in a protracted stalemate.

Hormuz Still Cripples Global Oil Flows

Crucially, the Strait of Hormuz has remained effectively shuttered by U.S. and Iranian blockades for weeks, heavily disrupting global oil flows and sending crude prices sharply higher compared with pre-war levels. Roughly a fifth of the world’s oil traverses the narrow waterway off Iran’s southern coast.

Brent crude futures, the global oil benchmark, were last lower by 1.5% at $110.47 a barrel. Before the beginning of the conflict, the contract was changing hands at around $70 a barrel.

Worries have abounded that a war-linked energy shock could spark a wave of inflation around the world and keep borrowing costs elevated.

All Eyes on Nvidia

Yet much of the sentiment in equity markets is in thrall to an ongoing boom in enthusiasm around artificial intelligence. The longevity of the massive burst of investment may receive a stern test later this week, when U.S. semiconductor giant Nvidia is due to report its latest results.