Investing.com – European stocks advanced on Tuesday, while oil prices fell back below $100 a barrel, as investors eyed signs of potential progress in negotiations between the U.S. and Iran.
A U.S. official quoted by Reuters suggested that there had been forward momentum in talks between Washington and Tehran, while President Donald Trump said the White House was contacted by Iranian officials.
Still, a new American blockade of Iran’s ports has infused an element of caution into wider market sentiment.
The pan-European Stoxx 600 rose 1%, the in Germany increased 1.2%, the in France climbed 1.1%, and the in the United Kingdom gained 0.2%.
Shares in Europe received a solid handover from Asia, where MSCI’s broadest index shares outside Japan and Japan’s advanced.
Oil prices, meanwhile, dipped. Brent crude futures, the global benchmark, had fallen by 1.5% to $97.88 a barrel, while U.S. West Texas Intermediate crude futures declined by 3.4% to $95.78 a barrel.
Yet both contracts are still 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 Iran war.
In individual stocks, Dior-parent flagged that the conflict in the Middle East has trimmed at least 1% from total group sales, denting optimism that the luxury sector may be able to continue a nascent recovery. Results from peer are due out after the close of European markets later today.