European stock markets rise, oil prices increase, and concerns over war in Iran continue

Investing.com - European stocks opened higher on Tuesday, oil prices rose slightly, and investors are assessing ongoing airstrikes in the Middle East, despite U.S. President Donald Trump announcing a temporary delay in military strikes against Iranian power plants.

As of 04:04 AM Eastern Time (08:04 GMT), the pan-European STOXX 600 index was up 0.4%, Germany’s DAX index increased by 0.5%, France’s CAC 40 rose 0.5%, and the UK’s FTSE 100 gained 0.4%.

On Monday, European stocks rebounded after Trump said he would delay strikes on Iran’s energy infrastructure for five days following what he described as a “productive” meeting with Tehran. However, Iranian officials denied any such talks are taking place and accused the president of making these statements to help soothe turbulent markets.

Crucially, the Strait of Hormuz, a vital waterway in southern Iran through which one-fifth of the world’s oil is transported, is currently effectively closed to tanker traffic. Container shipping companies are concerned that Iran may attack ships, leading to a near halt in passage through the strait.

As a result, oil prices fluctuated significantly, soaring to nearly $114 per barrel on Monday before falling back below $100, the first time in about two weeks. On Tuesday, the global benchmark May Brent crude futures rose 1.2% to $101.11 per barrel.

According to The Wall Street Journal, citing Israeli military officials, Iran’s newly launched missiles hit multiple locations in Israel. Meanwhile, The Wall Street Journal reports that Kuwait and Saudi Arabia were targeted by drones and missile attacks, while Israel stated it had struck targets related to Hezbollah in Lebanon supported by Iran.

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