European stocks opened higher on Tuesday amid continued uncertainty over the progress of talks aimed at ending hostilities in the Middle East, while oil prices eased from recent gains.
Technology stocks were among the strongest performers early in the session. Chipmaker STMicroelectronics climbed to its highest level in more than 25 years after announcing it had raised revenue targets for its data-centers business - a move market participants viewed as another sign of heightened enthusiasm for artificial intelligence-related demand.
By 03:14 ET (07:14 GMT), the pan-European Stoxx 600 had advanced 0.7%. Major national indices were also in positive territory: Germany's Dax rose 1.0%, France's CAC 40 gained 0.9% and the U.K.'s FTSE 100 was up 0.3%.
Energy markets saw a pullback. Brent crude futures, the global oil benchmark, fell 0.9% to $94.13 a barrel, trimming some of the previous session's gains. That earlier move higher had followed reports on Monday that Iran had stopped exchanging mediated messages with the United States, a development that had briefly pushed oil prices up.
Sentiment on the ground in the region remained mixed. Lebanon announced a partial ceasefire between Iran-backed Hezbollah militants and Israel, a step investors said lent some relief to risk perceptions. At the same time, Israel's military reported intercepting two projectiles fired from Lebanon on Tuesday, according to Reuters, underscoring persistent volatility.
U.S. President Donald Trump told ABC News that he believes a peace deal with Iran could be achieved within the next week. He characterized recent negotiations as having experienced "a little glitch," a reference he linked to Iran's objection to Israeli actions in Lebanon - a point that reportedly led Tehran to step away from talks. It was not immediately clear whether direct negotiations between the U.S. and Iran had resumed.
Market participants tracked these geopolitical developments alongside corporate news. STMicroelectronics' upward move was notable for its magnitude and its specific link to data-center revenue guidance, which market participants took as a fresh signal of AI-driven demand influencing semiconductor valuations.
Market snapshot
- Stoxx 600: +0.7% (03:14 ET / 07:14 GMT)
- Dax: +1.0%
- CAC 40: +0.9%
- FTSE 100: +0.3%
- Brent crude: -0.9% to $94.13 a barrel
Investors remain attentive to any new developments in U.S.-Iran dialogue and to on-the-ground security developments in Lebanon and Israel, both of which continue to influence energy-market dynamics and risk sentiment in European equity markets.