Trump’s pause on Iran strikes and potential nuclear deal talks sent oil prices lower, stabilizing bond markets and lifting European equities.
Global stocks traded in opposite directions while bond markets steadied on Tuesday after U.S. President Donald Trump delayed a planned strike on Iran, easing geopolitical tensions and pushing oil prices down. Trump cited ongoing negotiations and a “very good chance” of reaching a nuclear deal with Tehran as reasons for the pause, following a new peace proposal from Iran.
European equities rose 0.7%, recovering some of Friday’s 1.5% loss driven by bond market volatility. Despite the rebound, European stocks remain below pre-war levels and trail U.S. peers due to energy import dependence and fewer major tech firms. Meanwhile, S&P 500 futures slipped 0.3% as chip and data storage stocks retreated in pre-market trading after fueling recent record highs.
Market analysts noted skepticism over the Iran talks, emphasizing that tangible improvements in shipping safety through the Strait of Hormuz would be needed to sustain confidence. Until then, markets appear to be reacting cautiously to diplomatic developments.