European stock markets closed higher on Monday, driven by easing tensions between the United States and Iran. The pan-European Stoxx 600 index rose 0.02% to finish at 644.62 points.
Germany’s DAX 40 led major benchmarks, gaining 1.04% to close at 25,361.03 points. The UK’s FTSE 100 advanced 0.42% to 10,781.75 points, while France’s CAC 40 increased 0.4% to 8,406.06 points. Italy’s FTSE MIB rose 0.49% to 52,054.95 points.
Diplomatic signals pause strikes
The market rally followed reports that the US paused its latest strikes, which had been launched after disagreements over navigation in the Strait of Hormuz. US President Donald Trump said on Monday there is a good chance of reaching a deal with Iran.
Giving space for diplomatic talks.
US Permanent Representative to the UN Mike Waltz stated that President Trump is giving space for diplomatic talks with Iran. Iran’s military spokesperson Muhammed Ekreminiya confirmed that US attacks have stopped for the last two nights, and consequently Iran’s retaliations have also stopped.