European stocks opened higher on Tuesday, while oil prices fell below $100 a barrel, as investors watched for signs of possible progress in negotiations between the United States and Iran.
A U.S. official, quoted by Reuters, indicated that there was positive momentum in talks between Washington and Tehran, while President Donald Trump said the White House had received calls from Iranian officials.
However, the new US embargo on Iranian ports has added an element of caution to broader market sentiment.
By 11:11 (Saudi time), the European Stoxx 600 index had risen by 0.6%, the German DAX index had increased by 1.0%, the French CAC 40 index had climbed by 0.4%, and the British FTSE 100 index had gained by 0.3%.
Stocks in Europe received a strong delivery from Asia, with the broader MSCI index of stocks outside Japan and Japan’s Nikkei index both advancing.
Meanwhile, oil prices fell. Brent crude futures, the global benchmark, dropped 1.5% to $97.88 a barrel, while U.S. West Texas Intermediate crude futures fell 3.4% to $95.78 a barrel.
However, both contracts remain above pre-war levels, and the International Energy Agency has warned that oil prices do not yet reflect the depth of the supply shock caused by the Iranian war.
In individual stocks, Dior's parent company, LVMH, indicated that the conflict in the Middle East had reduced the group's total sales by at least 1%, dampening optimism that the luxury goods sector could sustain its nascent recovery. Results from peer Kering are due after the close of European markets later today.
