European stock markets began the week on a stronger footing on Monday as a string of reports and public comments revived hopes that the United States and Iran are close to sealing a peace framework.
By 03:05 ET (07:05 GMT), the pan-European Stoxx 600 had risen by 0.6%, the Dax in Germany had climbed by 1.0%, the CAC 40 in France had gained 0.9%, and the FTSE 100 in the U.K. was up by 0.2%.
Over the weekend, news outlets cited a senior White House official saying Washington and Tehran have agreed in principle on an accord to end their more than two-month old war. Crucially, the reports said the understanding would include the reopening of the Strait of Hormuz, the narrow waterway off Iran’s southern coast through which roughly a fifth of the world’s oil moves.
The strait has been largely closed to tanker traffic for weeks, a disruption that pushed oil prices higher and raised concerns about a possible spike in inflation across countries exposed to rising energy costs. Brent crude futures, the global benchmark, were last down by 4.3% at $95.90 a barrel. Although that marks a pullback from recent highs above $100 a barrel, Brent remains above the level seen before the conflict began in late February.
The senior official told reporters that specifics related to Iran’s nuclear ambitions still need to be fleshed out, and that Iran’s leadership is expected to take time before formally signing off on any framework understanding. In public comments, U.S. President Donald Trump posted on social media that he had instructed his representatives "not to rush into a deal," and added that an American blockade on Iranian ports would stay in effect until an agreement is "reached, certified, and signed."
Exactly when a formal signing might occur is uncertain. Analysts at Vital Knowledge wrote that "presumably this will happen within the next few days."
On the corporate front, one of the larger individual moves was in Germany, where shares of Delivery Hero jumped to an 18-month high after the food delivery group said it had received an indicative takeover offer from ride-hailing company Uber.
Market context and logistics implications
From a shipping and energy perspective, reopening the Strait of Hormuz would directly affect tanker movements and global crude flows. The strait’s closure has been a direct contributor to higher benchmark crude prices and the related inflationary worries noted by investors, an issue that helped shape market positioning heading into the new week.
Individual stocks
Delivery Hero’s share price reaction reflected the takeover chatter; the company confirmed receipt of an indicative approach, while market participants moved quickly to price the potential transaction into the stock.
Overall, the early-morning gains across major European indices appeared driven largely by the improving prospects for a negotiated end to hostilities and the potential normalization of shipping through the Strait of Hormuz.