European stock exchanges bet on de-escalation in the Middle East

European stock exchanges opened Thursday’s session in positive territory, while investors closely await possible diplomatic developments between the United States and Iran that could lead to a de-escalation of the conflict in the Middle East. Market sentiment remains cautious, but moderate optimism prevails, driven by the prospect of an agreement that could ease geopolitical tensions and stabilize energy prices.

The STOXX 600 recorded a slight increase of 0.05% to 623.59 points, confirming a positive trend also supported by the Frankfurt DAX, which gained 0.13% to 24,952.14 points. The CAC 40 in Paris also performed well, up 0.33% to 8,326.78 points. London, on the other hand, was weaker, with the FTSE 100 down 0.45% to 10,391.53 points, while Piazza Affari remained broadly flat: the FTSE MIB slipped 0.04% to 49,678.57 points. Overall, markets showed a wait-and-see attitude, awaiting new macroeconomic and political signals.

The President of the United States, Donald Trump, stated that “Iran has a good chance of accepting the agreement”; otherwise, “the bombings will resume and will be much more intense than those carried out so far.” The tycoon’s remarks once again fuel market hopes for a possible diplomatic solution, despite the fact that the situation remains highly fragile. Investors continue to focus on a potential de-escalation in the short term.

On the energy front, selling pressure prevailed, with the commodities sector registering a broad decline after recent gains linked to geopolitical tensions. Brent crude fell 1.25% to $100 per barrel, while WTI dropped 1.38% to $93.77. Natural gas also declined, losing 0.51% to $2.716, alongside RBOB gasoline, down 0.63% to $3.438. Among Middle Eastern grades, Murban Crude recorded the worst performance of the session, falling 1.82% to $96.5 per barrel. The movements reflect profit-taking and a temporary easing of tensions in international energy markets.