Hope of De-escalation sends European Stocks Up, Oil Down and Gold rebounds

European indices opened higher, supported by a growing sense of optimism in the markets. The United States, indeed, presented a 15-point plan aimed at ending the conflict, raising hopes for a de-escalation. Consequently, Iran announced the possible reopening of the Strait of Hormuz to “non-hostile” ships, reducing concerns about global energy supplies. Oil immediately reacted, falling below $100 per barrel for both Brent Crude and WTI. Investors seized the opportunity and remain confident.

Performance of major Indices

Specifically, the DAX gained 1.57% to 22,992.72 points, while the FTSE 100 rose 0.95% to 10,059.96 points. The CAC 40 advanced 1.40% to 7,852.25 points, and the FTSE MIB recorded a gain of 1.49% to 44,015.25 points. The Netherlands also started the session positively, with a 1.23% increase. The broad-based rally reflects investors’ positive reaction to easing geopolitical tensions, which is helping to improve the outlook for the European economy, particularly in terms of energy costs and inflation.

Oil declines: end of the black rally

It was a mixed day for the energy sector. Following statements by Donald Trump, oil fell about 5%, dropping below the $100-per-barrel threshold: Brent traded around $98.57, while WTI fell to approximately $87. These are among the lowest levels since the start of the latest Middle East escalation. Natural gas also lost ground, declining 1.46%, indicating a reduction in market pressure. In this context, energy stocks showed weakness: for example, Eni opened slightly lower (-0.15%), impacted by the drop in commodity prices.

Precious commodities on the Rebound

On the other hand, gold showed signs of recovery, reaffirming its role as a safe-haven asset amid ongoing uncertainty. The precious metal posted a significant increase, reaching around $4,500 per ounce, although still below the 17% peak recorded in January. Silver also followed a positive trend, rising nearly 5%, supported both by industrial demand and its safe-haven appeal amid geopolitical tensions.

Overall, commodities appear to be entering a rebound phase after recent declines linked to falling oil and natural gas prices. This trend reflects both optimism in global markets and investors’ interest in diversifying into tangible assets during periods of volatility, reinforcing gold and silver as key instruments to protect portfolios from macroeconomic and geopolitical risks.

Conclusion

To sum up, the overall picture shows that improvements in the geopolitical environment are supporting riskier assets, while temporarily penalizing the energy sector, traditionally boosted by high commodity prices. Investors remain vigilant, balancing risks and opportunities across sectors most sensitive to global market fluctuations.