Investing.com – European stock markets advanced on Monday, buoyed by a string of news reports and comments that have fired hopes that the U.S. and Iran are close to a peace deal.
By 03:05 ET (07:05 GMT), the pan-European had risen by 0.6%, touching hits highest point since March 2, while the in Germany had climbed by 1.0% and the in France had gained 0.9%. But liquidity is likely to be relatively thin, with the in the U.K., as well as stock markets on Wall Street, closed in observance of Memorial Day.
Washington and Tehran have agreed in principle on an accord to end their more than two-month old war, news outlets reported over the weekend, citing a senior White House official.
Crucially, the agreement would include the reopening of the Strait of Hormuz, a vital waterway off Iran’s southern coast through which roughly a fifth of the world’s oil flows. The strait has been all but shuttered to tanker traffic for weeks, driving up oil prices and fueling worries over a burst of inflation in countries around the world.
, the global oil benchmark, were last down by 4.3% at $95.90 a barrel. Despite sliding below recent peaks above $100 a barrel, Brent’s level is higher than it was prior to the start of the war in late February.
The official told reporters that details around Iran’s nuclear ambitions are still be more fully fleshed out, while Iranian leadership is anticipated to take some time signing off on a framework understanding.
Writing on social media, U.S. President Donald Trump flagged that he had told his representatives “not to rush into a deal,” adding that an American blockade on Iranian ports would stay in effect until an agreement is “reached, certified, and signed.”
When exactly a formal agreement will be announced remains unclear as well. Analysts at Vital Knowledge suggested that “presumably this will happen within the next few days.”
In individual stocks, shares of Germany’s spiked to an 18-month high after the food deliverer announced that it had received an indicative takeover offer from ride-hailing giant Uber.