European equities began Tuesday's session with modest advances while crude oil prices inched upward, as market participants continued to process developments from a string of air strikes and missile incidents across the Middle East. The moves came after U.S. President Donald Trump said he would temporarily delay planned U.S. military strikes on Iranian power plants.
By 04:04 ET (08:04 GMT), the pan-European Stoxx 600 index had risen 0.4%. Germany's Dax gained 0.5%, France's CAC 40 increased 0.5%, and the U.K.'s FTSE 100 advanced 0.4%.
On Monday, European stocks had staged a recovery after President Trump announced a five-day postponement of strikes aimed at Iranian energy infrastructure, a decision he said followed what he characterized as "productive" talks with Tehran. Iranian officials, however, denied that such talks had occurred and accused the president of making the claims in an effort to calm volatile markets.
Market attention has also focused on the Strait of Hormuz, a key maritime corridor to the south of Iran through which roughly one fifth of global oil supplies transit. According to reporting in the article, the strait remains effectively closed to tanker traffic. Container shipping companies, concerned about the risk of potential Iranian attacks on vessels, have largely refrained from permitting ships to pass through the waterway.
Oil prices swung sharply in response to the regional tensions, moving as high as $114 a barrel on Monday before retreating below $100 a barrel for the first time in about two weeks. On Tuesday, Brent crude futures for May - the global oil benchmark - were last up 1.2% at $101.11 a barrel.
Separately, fresh Iranian missiles reportedly struck several sites in Israel, citing Israeli military officials as reported by the Wall Street Journal. The same reporting indicated that Kuwait and Saudi Arabia had been targeted by drone and missile strikes. Israel, according to the report, said it had struck targets connected to Iran-backed Hezbollah in Lebanon.
Investors are parsing these developments amid ongoing uncertainty about the scope and duration of hostilities and their implications for shipping, oil flows, and regional stability. Trading patterns reflected a mix of risk-on moves in equities and persistent sensitivity in energy markets to disruptions in Gulf shipping lanes.
Market snapshot:
- Stoxx 600: +0.4%
- Dax: +0.5%
- CAC 40: +0.5%
- FTSE 100: +0.4%
- Brent crude (May): $101.11 a barrel, +1.2%