Stoxx 600, FTSE, DAX, CAC, Iran news, oil prices

LONDON — European stocks ended Wednesday in positive territory as the U.S. reiterated efforts to de-escalate the war with Iran and Tehran said it may allow “non-hostile” vessels through the Straight of Hormuz.

The pan-European Stoxx 600 closed the session almost 1.3% higher, with all major regional bourses in the green.

Housebuilders led the recovery, with shares in U.K. property developer Crest Nicholson finishing up 10.2% after posting an improved open market sales rate in the 10-week period to March 20.

Its results boosted sentiment across the sector, helping rival Bellway recover from some of its heavy losses earlier in the week.

Bellway shares had closed down 17.5% on Tuesday after the homebuilder warned of “volatility” in the mortgage market caused by inflationary cost pressure, but finished Wednesday’s trading up about 6%.

Meanwhile, the U.K. inflation rate stood firm at 3% in February, according to the latest figures from the Office for National Statistics, which marked the last reading before the start of the Iran war.

Core inflation, which excludes energy, food, alcohol, and tobacco, stood at 3.2% in February, up from 3.1% in January and landing in line with economists’ expectations.

Global markets are being buoyed by comments from U.S. President Donald Trump suggesting talks to end hostilities with Iran are ongoing. Tehran, however, continues to deny any direct negotiations are taking place.

Speaking at the Oval Office on Tuesday, Trump said the U.S. and Iran are “in negotiations right now”, adding he had stepped back from threats to target Iranian energy infrastructure “based on the fact we’re negotiating.”

“They’re talking to us, and they’re talking sense,” Trump said when asked to further explain his pivot.

Later on Tuesday, The New York Times reported that the U.S. has sent Iran a 15-point plan to end the war, citing two unnamed officials. Gold prices climbed on Wednesday, but oil prices dropped following the report.

An Iranian military spokesperson commented early Wednesday that the U.S. was essentially negotiating with itself, according to comments to the Islamic Republic News Agency (IRNA) reported by Reuters.

However, Iran’s UN Mission said in a post on X that ‘non-hostile vessels, including those belonging to or associated with other states’ may obtain ‘safe passage’ through the Strait of Hormuz via coordination with Tehran.

Asia-Pacific markets finished in positive territory overnight. U.S. stocks were trading higher by 1:06 p.m. ET Wednesday, with the Dow Jones Industrial Average last seen rising more than 320 points, or 0.7%.