European Markets Rise as Trump Weighs Iran Peace Proposal; Energy Stocks Lead Gains

European stock markets edged higher on Tuesday as investors reacted cautiously to geopolitical developments involving U.S. President Donald Trump and a reported Iran peace proposal linked to potential changes around the Strait of Hormuz. The sentiment helped offset earlier losses and supported gains across major regional indices.

The pan-European Stoxx 600 rose slightly, with London, Paris, Frankfurt, and Milan all closing in positive territory. Energy stocks led the rally, climbing around 1.4% as oil prices ticked higher amid ongoing uncertainty over the Iran conflict and its potential impact on global supply routes.

Corporate earnings also played a key role in market movements. Swiss pharmaceutical giant Novartis saw its shares decline after reporting a drop in first-quarter net income and operating profit, missing analyst expectations. Airbus also slipped slightly after updating investors on its quarterly performance, while Barclays shares fell following a credit-related charge tied to exposure in the property lending sector.

In contrast, BP delivered stronger-than-expected first-quarter results, with profits more than doubling and boosting investor confidence. The energy major’s performance helped lift sentiment in the broader energy sector, reinforcing gains seen across European markets.

Meanwhile, investors are closely watching upcoming central bank meetings from the U.S. Federal Reserve, European Central Bank, and Bank of England. These decisions come at a sensitive time as geopolitical tensions and inflation pressures continue to shape global economic expectations and market direction.

source: cnbc