The pan-European Stoxx 600 inched up 0.1% on Wednesday

European stocks edged higher on Wednesday as regional investors assess the latest military operations against Iran and declining oil prices.

The pan-European Stoxx 600

 inched up 0.1%, with major bourses in London, Paris and Frankfurt all finishing in the green.

The Iran war remains a focal point for European markets, with regional stocks edging lower on Tuesday after U.S. forces carried out what Central Command described as “self-defense” strikes in southern Iran, targeting missile launch sites and Iranian vessels allegedly attempting to deploy mines.

In response, Iran’s foreign ministry accused the U.S. of a “gross violation” of the fragile ceasefire between the two nations.

U.S. Secretary of State Marco Rubio said that the Strait of Hormuz will have to be opened “one way or the other.”

The apparent flare-up in hostilities came despite President Donald Trump indicating in a Truth Social post earlier this week that a peace agreement could be in sight, with negotiations “proceeding nicely.”