European stocks opened mixed on Tuesday amid continued uncertainty over whether a peace deal could be reached to end the war in Iran.
The pan-European STOXX 600 index settled at 580.37 points.
Britain’s FTSE 100 index rose 0.12% to 10,140.01 points, Germany’s DAX index fell 0.2% to 22,512.13 points, and France’s CAC 40 index declined by about 0.1% to 7,758.47 points.
Stock markets in the Asia-Pacific region experienced sharp fluctuations during overnight trading following a report that US President Donald Trump is seeking to avoid a prolonged conflict in the Middle East.
A report in the Wall Street Journal on Monday evening stated that Trump told his aides he was prepared to end U.S. military operations against Iran even if the Strait of Hormuz remained largely closed.
Trump and his aides believe that any operation aimed at reopening this vital corridor could prolong the conflict beyond the war's planned timeline of about six weeks, according to the newspaper.
In contrast, US Secretary of State Marco Rubio told Al Jazeera in an interview published on Monday that Washington's objectives in Iran would be achieved weeks, not months.
He said: “Those objectives include the destruction of their air force, which has been achieved; the destruction of their navy, which has been largely achieved; and a significant reduction in the number of missile launch platforms they have, and we are on our way to achieving that.”
We will also destroy the factories that produce the missiles and drones they use to attack their neighbors, the United States, and our presence in the region. We will achieve these objectives, either on schedule or ahead of schedule. We will achieve them in weeks, not months.
Following the Wall Street Journal report, U.S. stock futures rose on Monday night, and oil prices fell again in overnight trading, after Trump threatened on Wednesday to expand attacks to include Iran’s civilian energy infrastructure, including desalination plants, if Tehran failed to reopen the Strait of Hormuz.
On the corporate front, Unilever announced on Tuesday that it is in advanced talks with McCormick to merge its food business with the American spice company. The company confirmed that the deal could be finalized today.
Unilever said: “If the transaction proceeds, it is expected to include an immediate cash component of approximately $15.7 billion, with the majority of the compensation in the form of McCormick shares. Upon completion, Unilever and its shareholders are expected to own 65% of the combined company.”
