BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks look set to open a tad higher on Tuesday despite renewed uncertainty over U.S.-Iran peace negotiations.
After Iran suspended indirect negotiations with the United States and insisted there can be no peace that doesn't include Lebanon, the Lebanese government announced that a limited ceasefire has been reached between Israel and Iranian-backed Hezbollah.
However, fighting continues in southern Lebanon, keeping the situation fluid.
Israeli Prime Minister Benjamin Netanyahu said that he spoke with U.S. President Donald Trump by phone and told him that the Israel Defense Forces (IDF) will continue to operate as planned in southern Lebanon if Hezbollah doesn't stop firing at Israel.
Trump told ABC News that he anticipates securing an agreement with Tehran to extend the ceasefire and reopen the Strait of Hormuz 'over the next week.' Separately, speaking to CNBC, Trump said he didn't care if the negotiations were over.
Asian markets were broadly lower in cautious trade on concerns over a prolonged Middle East conflict.
The dollar and Treasury yields were unchanged in Asian trade while gold traded higher at $4,517 an ounce after ending lower overnight on resilient U.S. data.
Copper and aluminum prices rose after President Trump signed a proclamation amending tariffs on certain copper, aluminum and steel imports.
Brent crude futures fell nearly 1 percent below $95 a barrel after climbing more than 4 percent in the overnight U.S. trading session on concerns about supply disruptions.
Overnight, U.S. stocks recovered from a cautious start to reach new record closing highs as Nvidia unveiled a new AI chip for personal computers, and President Trump said talks with Iran were continuing at a rapid pace and that a memorandum of understanding with Iran could be reached within the next week.
Earlier, Iran suspended all indirect talks with the U.S. and announced it would pursue 'complete closure of Strait of Hormuz' in response to Israeli attacks in Lebanon and the recent 'U.S. self-defense strikes' on the Islamic Republic.
In economic news, data showed U.S. manufacturing activity expanded for the fifth consecutive month in May to hit the highest level in four years.
The tech-heavy Nasdaq Composite gained 0.4 percent, the S&P 500 rose 0.3 percent and the Dow finished marginally higher.
European stocks hit a one-week low on Monday as renewed tensions in the Middle East dampened hopes for an imminent peace deal.
The pan-European STOXX 600 fell 0.8 percent. The German DAX dipped 0.4 percent, France's CAC 40 shed half a percent and the U.K.'s FTSE 100 declined 0.7 percent.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
