European stocks opened higher on Wednesday, while oil prices retreated, following reports of a potential meeting between the U.S. and Iran this week.
Track European stocks with InvestingPro - now 50% off By 04:06 ET (08:06 GMT), the pan-European Stoxx 600 had jumped 1.3%, the Dax in Germany had gained 1.7%, the CAC 40 in France had climbed 1.4%, and the FTSE 100 in the United Kingdom had advanced 0.9%.
Mediators from Turkey, Egypt and Pakistan are attempting to arrange talks between officials from the U.S. and Iran by Thursday, the Wall Street Journal has reported.
With President Donald Trump reportedly keen to seek a diplomatic resolution to the nearly month-old conflict between the joint U.S.-Israeli forces and Iran, the U.S. is also said to have presented Tehran with a 15-point peace plan. Along with demands for Iran to dismantle its main nuclear sites, the U.S. is also calling for the reopening of the Strait of Hormuz, a vital waterway south of Iran that has been effectively closed to tanker traffic for weeks, driving up energy prices and threatening to ignite inflationary pressures in countries around the globe.
Reports said Iran has set a high bar for negotiations, including the establishment of fee collection from ships traversing the strait. An Iranian military spokesperson also appeared to cold water on a possible immediate resolution to the war, saying the U.S. is only “negotiating with” itself.
Earlier this week, Trump announced a five-day halt to military attacks on Iranian energy infrastructure following what he described as “productive” talks with Tehran. Iranian officials disputed the claim, accusing Trump of fabricating the discussions to help calm volatile financial markets.
The war has carried on, with fresh attacks hitting facilities in U.S. allies in the Persian Gulf. Trump’s apparent willingness to negotiate has reportedly alarm some Gulf countries, and driven Saudi Arabia and the United Arab Emirates to urge Trump to continue the war until Iran’s regional influence is weakened.
Still, the prospect of mediated conversations between the U.S. and Iran was enough to spark a decline in oil prices, which have been elevated for days compared to pre-war levels.
Futures expiring in May for Brent crude, the global benchmark, were last lower by 4.8% at $99.50 a barrel.
