Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com -- European equities opened sharply higher on Wednesday, with gains spread across most sectors, as markets welcomed a conditional ceasefire agreement between the United States and Iran that eased weeks of tensions in the Middle East.
German automakers were among the biggest gainers, with Porsche SE, Mercedes-Benz, Porsche AG, Volkswagen, and BMW all rising between 4% and 7% by 08:02 GMT.
Luxury names also surged, with Kering, LVMH, and Hermes up around 6–7%.
The deal came after President Trump said he had agreed to suspend attacks on Iran for two weeks, subject to the immediate reopening of the Strait of Hormuz, pointing to progress on a 10-point proposal from Tehran.
Earlier on Tuesday, Trump had threatened to wipe out the entirety of the country’s civilization if Tehran did not cede to his demands by 8 p.m. ET. Trump added that the U.S. "will be helping with the traffic buildup" in the strait.
Iranian Foreign Minister Abbas Araghchi said on behalf of the country’s Supreme National Security Council that Tehran’s armed forces will "cease their defensive operations."
Banks rallied broadly. Commerzbank jumped nearly 10% and Deutsche Bank rose 7.3%, while Spanish lenders BBVA, CaixaBank, Sabadell, Bankinter, Santander, and Unicaja gained between 3.5% and 8%.
French banks BNP Paribas, Société Générale, and Crédit Agricole rose between 5% and 10%, and Italy’s FTSE Italia All-Share Banks index climbed 6.5%.
European Chipmakers also surged, with BESI, ams International, ASML, Soitec, and STMicroelectronics soaring between 5% and 11%.
Conversely, energy stocks in the region fell as oil prices dropped below the $100 mark on the ceasefire news. Brent futures slumped nearly 14% to $94.30 at the time of writing, while WTI futures sank over 15% to $95.77.