BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks bounced back on Tuesday after ending lower for three consecutive sessions on concerns that a deepening conflict in the Middle East could fuel inflation and dent economic growth.
Investor sentiment improved somewhat after U.S. President Donald Trump said the war in Middle East could come to a quick end, sending bond yields tumbling and oil prices plunging.
Meanwhile, Iran's Revolutionary Guards have issued a stern warning, saying they would not allow 'one liter of oil' to be shipped from the Middle East if military strikes by the U.S. and Israel continue.
'If Iran does anything that stops the flow of Oil within the Strait of Hormuz, they will be hit by the United States of America TWENTY TIMES HARDER than they have been hit thus far,' Trump said in a social media post.
The pan European Stoxx 600 jumped 2.1 percent to 607.18 after falling 0.6 percent in the previous session.
The German DAX surged 2.4 percent, France's CAC 40 added 1.9 percent and the U.K.'s FTSE 100 was up 1.6 percent.
French automaker Renault climbed 2.7 percent after announcing it is targeting substantial international expansion by 2030.
German peer Volkswagen gained 3.3 percent after saying it targets a margin of 8-10 percent in 2030.
Fashion group Hugo Boss rallied 3.6 percent after reporting a 2025 annual operating profit that surpassed expectations.
Wind turbine manufacturer Nordex Group soared 5.2 percent on receiving orders from Wpd totalling nearly 280 MW.
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