President Trump said he was postponing strikes on Iranian energy infrastructure
European stocks stage rebound as Trump signals Iran war de-escalation
European stocks rebounded sharply on Monday after U.S. President Donald Trump signaled a potential dramatic de-escalation in the ongoing Iran conflict.
The pan-European Stoxx 600 was up 1.65% shortly after 3:50 p.m. in London (11:50 a.m. ET), having traded almost 2% lower earlier in the session, with major bourses and most sectors surging into positive territory.
President Trump said he was postponing strikes on Iranian energy infrastructure for five days. The president wrote in a TruthSocial post that U.S. and Iranian officials had held “very good and productive” talks regarding a “complete and total resolution” of hostilities.
Travel and leisure stocks led the way in Europe, advancing 2.9% after Trump’s post, while basic resources, which had tumbled 3.1% in morning trade, was last seen up 3.2%.
Precious metals eased earlier losses. Spot gold was down 2% on Monday at $4396.64, with gold futures 3.8% lower, at $4401.70.
The swings followed a sell-off in Asian markets on Monday, amid continued concerns over the Iran war and the blockage of vital maritime passage, the Strait of Hormuz.
U.S. President Donald Trump said Saturday that he would “obliterate” Iran’s power plants if Tehran failed to fully reopen the Strait within 48 hours.
Iran responded by escalating threats to target energy infrastructure and desalination facilities in the Gulf. Iranian Parliament speaker Mohammad Bagher Ghalibaf also said Saturday that entities that purchase American government bonds and “finance the U.S. military budget” would be considered legitimate targets, alongside military bases.
In corporate news, Poste Italiane tumbled 6.5% after Italy’s majority state-owned postal service unveiled plans to buy Telecom Italia in a cash-and-share deal worth 10.8 billion euros ($12.5 billion). Poste Italiane is Telecom Italia’s largest shareholder. Telecom Italia’s shares rose 5.4%.
Delivery Hero advanced 10.7% in afternoon dealmaking after it said it had agreed to sell its delivery platform in Taiwan to Grab Holdings for $600 million.
