European Markets Jump Green as Trump Signals Possible Iran Deal
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European equities rally on fresh diplomatic optimism
Major European exchanges opened higher on Tuesday morning, buoyed by US President Donald Trump's announcement that a planned air strike on Iran has been called off and that diplomatic talks could lead to a nuclear‑related agreement with Tehran.
In Paris, the CAC 40 rose 0.59% to 8,034.66 points at 07:30 GMT. Frankfurt's DAX climbed 0.77% and London's FTSE 100 added 0.49%. The broader EuroStoxx 50 gained 0.47%, the FTSEurofirst 300 was up 0.48% and the Stoxx 600 increased 0.51%.
Trump told reporters in Washington that the United States sees “very large chances” of reaching a deal with Iran to stop its nuclear weapons program, a statement that followed his decision on social media to cancel the strikes scheduled for Tuesday.
Oil prices reacted to the diplomatic thaw, with Brent crude sliding roughly 1.5% while staying above the $110‑per‑barrel level. Bond markets, after a recent wave of sales driven by inflation worries, found some stability as yields steadied.
The combined effect of easing geopolitical risk and lower energy prices gave investors a short‑term boost, though analysts warn that lingering inflation concerns could keep pressure on rates and bond yields.