BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are likely to open higher on Thursday after U.S. President Donald Trump said the recent armed clashes would not lead to the end of the ceasefire with Iran or the resumption of full-scale war.
Holding a press conference in Ankara, Turkey, Trump harshly criticized the Iranian leadership but assured that everything will be safer, including oil. Whatever happens, it will end very quickly and cause oil prices to drop further, Trump claimed.
Meanwhile, U.S. forces have launched another round of strikes against Iran late Wednesday, with explosions reported in several Iranian locations, including the port city of Bandar Abbas, Sirik, Chabahar Port, Bushehr and Abu Musa Island.
In a social media post, the U.S. Central Command said the additional strikes were launched 'to further degrade their ability to threaten freedom of navigation in the Strait of Hormuz.'
In an earlier post, CENTCOM said more than 20 U.S. Navy warships were patrolling waters across the Middle East.
Iranian military sources said the country's missile and drone forces would soon launch a large-scale response against U.S. military bases in the Middle East.
Mohsen Rezaei, a military adviser to Iran's supreme leader, said in a social media post that 'aggressors and their accomplices' would face a severe response.
The International Monetary Fund (IMF) has cut its 2026 global growth forecast to 3.0 percent from 3.1 percent in its April forecast, reflecting the effects of the war in the Middle East.
Asian markets were mixed, giving up early gains led by chipmakers on optimism over AI-driven demand.
China's consumer inflation slowed more than expected in June while the producer price index surged for a fourth straight month to its highest since July 2022, official data released earlier today showed.
The dollar held firm against most major currencies while gold steadied after three days of losses to trade around $4,072 an ounce.
Treasuries were little changed after a global bond sell-off on Wednesday on Fed rate hike bets.
Oil extended gains, with Brent crude futures surging toward $79 a barrel on fears that intensifying U.S.-Iran tensions might disrupt shipping through the Strait of Hormuz.
U.S. stocks ended mostly lower overnight as investors fretted about the economic impacts of the Iran war.
After declaring the ceasefire with Iran is done, President Trump called Iran's leadership 'sick people', adding he was 'very upset' with the country's military alliance with Spain.
Trump later said additional strikes on Iran won't last long, drawing a line against the possibility of a full-scale war.
In economic news, minutes from the Fed's June 16-17 meeting showed that policymakers were split on the future of interest rates, offering competing cases for hikes or cuts.
The Dow dipped 1.1 percent and the S&P 500 shed 0.3 percent while the tech-heavy Nasdaq Composite finished 0.2 percent higher.
European stocks closed sharply lower on Wednesday after the United States launched airstrikes against more than 80 Iranian military targets and simultaneously revoked a crucial Treasury license allowing Tehran to sell oil.
Iran retaliated against Bahrain and Kuwait following U.S. strikes, deepening fears over Strait of Hormuz shipping.
The pan-European STOXX 600 slumped 1.6 percent. The German DAX and France's CAC 40 both plunged by 2.2 percent while the U.K.'s FTSE 100 tumbled 1.7 percent.
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