Key Takeaways

• Broad gains: The Stoxx 600 rose 0.7%, Germany’s DAX climbed 1.0%, France’s CAC 40 advanced 0.9%, and the U.K.’s FTSE 100 gained 0.3%.
• Brent retreats: Oil eased 0.9% to $94.13 per barrel, paring Monday’s gains after reports Iran halted mediated communications with the U.S.
• Lebanon partial ceasefire: Lebanon announced a partial ceasefire between Hezbollah and Israel, lifting sentiment.
• But projectiles still flying: Israel’s military said it intercepted two projectiles fired from Lebanon on Tuesday.
• Trump’s “one week” claim: The president told ABC News he thinks a peace deal with Iran could be reached within the next week.
• “A little glitch”: Trump acknowledged a hiccup in negotiations, likely referring to Iran’s objection to Israeli actions in Lebanon.
• “Don’t care” then “rapid progress”: Trump told CNBC he didn’t care if Iran stopped responding, but later said talks were “progressing rapidly.”
• Iran’s communication halt: Reports said Monday that Tehran had ceased exchanging mediated messages with the U.S.
• Talks resumption unclear: It was not immediately clear whether negotiations had officially resumed.

European stocks opened higher on Tuesday, while oil prices retreated, as investors gauged uncertainty around a potential agreement to end hostilities in the Middle East.

By 03:14 ET (07:14 GMT), the pan-European Stoxx 600 had risen 0.7%, Germany’s DAX was up 1.0%, France’s CAC 40 had advanced 0.9%, and the U.K.’s FTSE 100 climbed 0.3%.

Oil Pulls Back; Lebanon Partial Ceasefire Lifts Mood

Brent crude futures, the global oil benchmark, retreated 0.9% to $94.13 a barrel, paring back some of the gains logged after reports said on Monday that Iran had ceased exchanging mediated messages with the United States.

Helping sentiment was Lebanon’s announcement of a partial ceasefire between Iran-backed Hezbollah militants and Israel — although Israel’s military said it had intercepted two projectiles fired from Lebanon on Tuesday, according to Reuters.

Trump Sees Deal “Within a Week”

U.S. President Donald Trump told ABC News that he thinks a peace deal with Iran could be reached over the next week. Trump claimed there “was a little glitch” in the negotiations — likely referring to Iran’s objection to Israeli aggression against Lebanon, which had reportedly spurred Tehran’s decision to walk away from talks.

It was not immediately clear whether U.S.-Iran negotiations had formally resumed.

The president had earlier told CNBC that he did not care if Iran had stopped responding to negotiations. But he later said that talks with Iran were “progressing rapidly” — leaving markets parsing the conflicting signals.