European stocks opened higher on Wednesday as the U.S. reiterated efforts to de-escalate the war with Iran and Tehran said it may allow “non-hostile” vessels through the Straight of Hormuz.
Shortly after the opening bell, the pan-European Stoxx 600 was seen trading 1.4% higher, with all sectors besides oil and gas stocks in the green. The U.K.’s FTSE 100 was seen trading 0.9% higher, with Germany’s DAX up 1.6% and France’s CAC 40 up 1.4%. Italy’s FTSE MIBwas 1.4% higher.
Miners and housebuilders led the recovery, with FTSE 100-listed Fresnillo and Hochschild Mining rising 3.5% and 4.8%, respectively. UK property developer Bellway recovered from some of its heavy losses earlier in the week, jumping 4.6%.
Its shares had closed down 17.5% on Tuesday after the homebuilder warned of “volatility” in the mortgage market caused by inflationary cost pressure.
Meanwhile, the U.K. inflation rate stood firm at 3% in February, according to the latest figures from the Office for National Statistics, which marked the last reading before the start of the Iran war.
Core inflation, which excludes energy, food, alcohol, and tobacco, stood at 3.2% in February, up from 3.1% in January and landing in line with economists’ expectations.
Global markets are being buoyed by comments from U.S. President Donald Trump suggesting talks to end hostilities with Iran are ongoing. Tehran, however, continues to deny any direct negotiations are taking place.
Speaking at the Oval Office on Tuesday, Trump said the U.S. and Iran are “in negotiations right now”, adding he had stepped back from threats to target Iranian energy infrastructure “based on the fact we’re negotiating.”
“They’re talking to us, and they’re talking sense,” Trump said when asked to further explain his pivot.
Later on Tuesday,has sent Iran a 15-point plan to end the war, citing two unnamed officials. Gold prices climbed on Wednesday, but oil prices dropped following the report.
However, Iran’s UN Mission said in a post on X that ‘non-hostile vessels, including those belonging to or associated with other states’ may obtain ‘safe passage’ through the Strait of Hormuz via coordination with Tehran.