BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening broadly higher on Friday after reports suggested that the U.S. and Iran have reached a temporary agreement to extend their ceasefire by 60 days, resume unrestricted shipments through the Strait of Hormuz, and begin negotiations over Tehran's nuclear program.
Commenting on the final status of an interim deal, U.S. Treasury Secretary Scott Bessent said, 'the teams have been going back and forth' and President Trump had set out three 'red lines' for negotiations.
The three conditions are that Iran must hand over its highly enriched uranium, abandon its nuclear weapons development, and guarantee free passage through the Strait of Hormuz.
Bessent stressed that there can be no deal without these conditions and Trump will not sign a deal that is disadvantageous to the United States.
Vice President JD Vance cautioned that it remains uncertain whether or when an agreement with Iran could be finalized.
Investors may also cheer better-than-expected financial results from Dell. After the U.S. closing bell, the computer hardware maker raised its annual revenue and profit expectations amid surging AI server demand, sending its shares up nearly 40 percent in extended trading.
Asian markets were broadly higher amid investor optimism that the Middle East conflict is inching toward an end and that the reopening of the Strait of Hormuz may ease disruptions to energy flows.
Renewed optimism toward artificial-intelligence stocks lifted Japan's Nikkei and South Korea's Kospi towards a new record.
The dollar headed for a weekly loss and gold steadied above $4,500 an ounce as U.S.-Iran ceasefire talks progress. Brent crude futures fell below $92 a barrel and remained on track for a sharp monthly loss.
Overnight, U.S. stocks reversed early losses to reach new record closing highs as geopolitical tensions eased, core price index rose less than expected in April, and Snowflake's strong earnings outlook revived investor enthusiasm around the AI trade.
Media reports suggested that U.S. and Iranian negotiators have reached an agreement to extend the ceasefire for 60 days and allow 'unrestricted' shipping through the vital Stratis of Hormuz without any tolls paid to Tehran.
Axios reported that President Trump still needs to approve the terms and has asked for 'a couple of days' to decide. The report also stated that Iran would clear all mines from the vital waterway within 30 days.
In economic news, the PCE price index rose by 0.4 percent sequentially in April and by 3.8 percent year-over year. The annual rate of core PCE price index ticked up to 3.3 percent from 3.2 percent in March.
Consumer spending crept up in April, raising concerns the Federal Reserve would be forced to lift interest rates.
Separate data showed the U.S. economy grew at a 1.6 percent annual rate in in the first quarter, slower than previously estimated.
The tech-heavy Nasdaq Composite surged 0.9 percent, the S&P 500 advanced 0.6 percent and the Dow inched up marginally.
European stocks ended lower on Thursday as investors reacted to mixed signals over the status of a potential U.S.-Iran peace deal.
The pan-European STOXX 600 declined half a percent. The German DAX dipped 0.3 percent, France's CAC 40 slid 0.2 percent and the U.K.'s FTSE 100 shed 0.8 percent.
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