European stocks rose on Wednesday, as the United States reaffirmed its efforts to de-escalate tensions with Iran, and Tehran announced it might allow non-hostile vessels to pass through the Strait of Hormuz.
The pan-European STOXX 600 index rose 1.4% to 587.67 points, with all sectors posting gains except for oil and gas stocks.
Britain’s FTSE 100 index rose 0.9% to 10,064.19 points, Germany’s DAX index jumped 1.6% to 23,000.11 points, and France’s CAC 40 index climbed 1.3% to 7,851.50 points.
Shares of mining companies and real estate developers led the recovery, with FTSE 100-listed Fresnillo rising 3.5% and Hochschild Mining climbing 4.8%.
Shares in British property developer Bellway also recovered from some of their heavy losses earlier in the week, posting a 4.6% jump. The company's shares had closed down 17.5% on Tuesday after it warned of volatility in the mortgage market due to inflationary pressures on costs.
Meanwhile, UK inflation held steady at 3% in February, according to the latest data from the Office for National Statistics, the last reading before the outbreak of war in Iran. Core inflation, which excludes energy, food, alcohol, and tobacco, was 3.2% in February compared to 3.1% in January, in line with economists' expectations.
The global market received a boost from statements by US President Donald Trump, in which he hinted at the continuation of talks to end hostilities with Iran, although Tehran continues to deny any direct negotiations.
“We are negotiating with Iran right now,” Trump said Tuesday from the Oval Office, adding that he had backed down from his threats to target Iranian energy infrastructure “because we are in negotiations.” He added, “They are talking to us, and they are talking reasonably,” in response to a question about clarifying his position.
Later, The New York Times reported that the United States had sent Iran a 15-point plan to end the war, citing two unnamed officials. Following the report, gold prices rose while oil prices fell.
For his part, an Iranian military spokesman commented on Wednesday morning that the United States is essentially negotiating with itself, according to Reuters.
But Iran’s mission to the United Nations said in a post on the X platform that “non-hostile vessels, including those belonging to or associated with other countries, may be granted safe passage” through the Strait of Hormuz in coordination with Tehran.
