European shares Rise as Hopes for U.S.-Iran deal Ease Market Jitters

European shares advanced on Tuesday after investors welcomed news that the United States had paused an attack on Iran following Tehran’s latest peace proposal, with the chances of a deal appearing closer, Twesha Dikshit reported for Reuters.

European stock markets rose Tuesday amid optimism over possible US-Iran negotiations and easing oil prices. (Photo: Deutsche Bourse AG)

US President Donald Trump said there was now a “very good chance” of reaching a deal limiting Iran’s nuclear program.

Oil prices fell by as much as 2%, although they remained above $100 a barrel, while bonds steadied after a steep selloff in recent sessions.

The pan-European STOXX Europe 600 rose 0.8% to 614.83 points as of 0806 GMT but continued to trade below prewar levels. Other regional markets also advanced, with Germany’s DAX and France’s CAC 40 gaining 1.1% and 0.8%, respectively.

European equities have lagged behind global peers, with the region’s dependence on oil imports weighing on markets, while US and global equities have rebounded on optimism driven by artificial intelligence-related growth.