U.S. President Donald Trump speaks to reporters before boarding Air Force One at Palm Beach International Airport on March 23, 2026 in West Palm Beach, Florida.
Roberto Schmidt | Getty Images
LONDON — European stocks opened higher on Wednesday as the U.S. reiterated efforts to de-escalate the war with Iran and Tehran said it may allow “non-hostile” vessels through the Straight of Hormuz.
The pan-European Stoxx 600 was trading 1.4% higher shortly after 9:45 a.m. London time (5:45 E.T.), with all sectors besides oil and gas stocks in the green. The U.K.’s FTSE 100 was seen trading 0.8% higher, with Germany’s DAX up 1.3% and France’s CAC 40 up 1.2%. Italy’s FTSE MIB was 1.3% higher.
Housebuilders led the recovery, with shares in UK property developer Crest Nicholson surging 10% in morning trade after posting an improved open market sales rate in the first quarter of 2026.
Its results boosted sentiment across the sector, helping rival Bellway recover from some of its heavy losses earlier in the week.
Bellway shares had closed down 17.5% on Tuesday after the homebuilder warned of “volatility” in the mortgage market caused by inflationary cost pressure, but were last seen up 4.2%.
Meanwhile, the U.K. inflation rate stood firm at 3% in February, according to the latest figures from the Office for National Statistics, which marked the last reading before the start of the Iran war.
Core inflation, which excludes energy, food, alcohol, and tobacco, stood at 3.2% in February, up from 3.1% in January and landing in line with economists’ expectations.
Global markets are being buoyed by comments from U.S. President Donald Trump suggesting talks to end hostilities with Iran are ongoing. Tehran, however, continues to deny any direct negotiations are taking place.
Speaking at the Oval Office on Tuesday, Trump said the U.S. and Iran are “in negotiations right now”, adding he had stepped back from threats to target Iranian energy infrastructure “based on the fact we’re negotiating.”
“They’re talking to us, and they’re talking sense,” Trump said when asked to further explain his pivot.
Later on Tuesday, The New York Times reported that the U.S. has sent Iran a 15-point plan to end the war, citing two unnamed officials. Gold prices climbed on Wednesday, but oil prices dropped following the report.
An Iranian military spokesperson commented early Wednesday that the U.S. was essentially negotiating with itself, according to comments to the Islamic Republic News Agency (IRNA) reported by Reuters.
However, Iran’s UN Mission said in a post on X that ‘non-hostile vessels, including those belonging to or associated with other states’ may obtain ‘safe passage’ through the Strait of Hormuz via coordination with Tehran.
