BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening on a positive note Wednesday as oil prices retreated on data showing a surprise inventory build and Iran confirmed the death of its national security chief Ali Larijani.
Oil prices fell more than 2 percent after data from the American Petroleum Institute showed that U.S. oil inventories grew by 6.60 million barrels in the past week, against expectations for a 0.6 mb draw.
Additionally, Iraqi and Kurdish authorities agreed to resume oil exports through Turkey's Ceyhan port, offering some relief to investors worried about supply disruptions caused by the escalating U.S.-Israel war on Iran.
As the Middle East conflict entered its 19th day, Iran has intensified its attacks on Israel and U.S. bases across Gulf nations.
Overnight, heavy strikes targeted key U.S. military installations, including Al Udeid Air Base in Qatar, Al Dhafra Air Base in the UAE, and Ali Al Salem Air Base in Kuwait.
Saudi Arabia's Ministry of Defence reported intercepting and destroying drones in the eastern region of the country.
According to The Times of Israel, Iran launched ballistic missile strikes on central Israel, reportedly using warheads suspected to contain cluster munitions. These weapons release multiple smaller bombs over a wide area, causing large-scale destruction.
Meanwhile, the U.S. military is targeting Iranian missile sites near the Strait of Hormuz. 'Hours ago, U.S forces successfully employed multiple 5,000-pound deep penetrator munitions on hardened Iranian missile sites along Iran's coastline near the Strait of Hormuz,' the U.S. military said on X.
In economic releases, U.S. producer price index, mortgage applications, factory orders and durable goods orders data will be in the spotlight today as investors seek more clarity on the outlook for inflation, interest rates and economic growth.
The focus is also on upcoming central bank meetings, with the U.S. Federal Reserve scheduled to announce its interest-rate decision later in the day.
Due to heightened concerns about the inflation outlook, the Fed is widely expected to keep its policy rate unchanged.
Asian markets were mostly higher and the dollar was little changed, while gold prices were subdued below $5,000 an ounce.
U.S. stocks eked out modest gains overnight, extending gains from the previous session as oil resumed its upward move and President Trump wrote in a Truth Social post that the U.S. has decimated Iran's Military and that America does not require support from its allies to protect shipping traffic in the Strait of Hormuz.
A key UAE oil loading port, Fujairah, suspended operations again and Israel claimed to have killed Iran security chief Ali Larijani, marking the latest escalation in the Iran war.
The tech-heavy Nasdaq Composite edged up by half a percent while the S&P 500 and the Dow added 0.3 percent and 0.1 percent, respectively.
European stocks rose for a second day on Tuesday as energy stocks benefited from rising oil prices amid fears over constrained supply.
The pan-European Stoxx 600 advanced 0.7 percent. The German DAX climbed 0.7 percent, France's CAC 40 gained half a percent and the U.K.'s FTSE 100 surged 0.8 percent.
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