BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening a tad higher on Wednesday, even as London's FTSE 100 may open in the red as oil prices declined on improved prospects of a U.S.-Iran deal.
Brent crude futures fell below $98 a barrel after reports emerged that some LNG tankers have passed through the Strait of Hormuz in recent days, helping ease supply concerns amid prolonged West Asia conflict.
Hours after the U.S. struck Iranian naval facilities, U.S. Secretary of State Marco Rubio said a potential deal to end the Middle East conflict could 'take a few days' amid unresolved issues surrounding Tehran's frozen assets and unrestricted passage through Hormuz.
Iran condemned the self-defense strikes conducted by U.S. forces and said it would leave no act of aggression unanswered.
Iran's Islamic Revolutionary Guard Corps (IRGS) said that it targeted an F-35 fighter jet and several drones after identifying 'hostile aircraft' entering Iranian airspace.
It is feared that further military escalation could prompt Iran to retaliate against neighboring states.
In a written statement carried by state television, Iran's Supreme Leader Mojtaba Khamenei said regional countries would no longer be shields for U.S. bases.
As the Middle East conflict drags on, ECB policymaker and Bank of France Governor Villeroy de Galhau said in an interview to the broadcaster CNBC on Tuesday that the European Central Bank 'will do what is necessary' to bring inflation back to the 2 percent target.
Asian stocks were mixed, with Chinese and Hong Kong markets declining after China punished three brokerages for offering mainland investors access to overseas stocks without licenses.
The dollar was little changed in Asian trade, while gold was a tad higher at $4,510 an ounce.
U.S. stocks ended mostly higher overnight as bond yields eased following comments by President Trump that negotiations with Iran 'are proceeding nicely.'
Investors shrugged off new data that showed U.S. consumer confidence eased in May due to increased worries about inflation linked to the Iran war.
The tech-heavy Nasdaq Composite and the S&P 500 surged 1.2 percent and 0.6 percent, respectively to reach new record closing highs, propelled by a rally in chip and memory stocks. The narrower Dow eased 0.2 percent.
European stocks closed firmly lower on Tuesday after the U.S. military launched new strikes on Iran and ECB Executive Board member Isabel Schnabel said the central bank should raise interest rates in June even there's a quick resolution to the Middle East conflict.
The pan-European STOXX 600 declined 0.6 percent. The German DAX dipped 0.8 percent and France's CAC 40 gave up 1 percent while the U.K.'s FTSE 100 edged up by 0.2 percent as traders returned from a long holiday weekend.
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