European stock markets moved into negative territory at Tuesday’s open, as investors reacted to reports suggesting U.S. President Donald Trump may reject a proposal from Iran aimed at ending the two-month conflict.
At 07:06 GMT, the pan-European Stoxx 600 was down 0.3%, while Germany’s DAX slipped 0.2%. France’s CAC 40 also declined 0.3%, and the UK’s FTSE 100 eased 0.1%.
According to media reports, Trump is dissatisfied with Tehran’s latest offer, which would bring an end to hostilities and reopen the Strait of Hormuz but delay negotiations over Iran’s nuclear programme.
The U.S. president has repeatedly emphasized that eliminating Iran’s nuclear capabilities—particularly any potential to develop nuclear weapons—has been a central objective of the joint U.S.-Israeli offensive launched in late February. As a result, Reuters reported, citing a U.S. official, that Trump views the proposal unfavorably.
Optimism around renewed diplomatic efforts weakened over the weekend after Trump cancelled plans to send negotiators to Pakistan for another round of talks.
Iran’s foreign minister made two brief visits to Islamabad before traveling to meet Russian President Vladimir Putin on Monday, where he reportedly secured support.
Amid ongoing diplomatic tensions, the Strait of Hormuz remains largely closed to shipping. The strategic waterway, which handles roughly one-fifth of global oil supply, has been effectively shut for weeks, pushing crude prices significantly above pre-conflict levels.
This situation has heightened concerns that rising energy costs could fuel global inflation, potentially prompting central banks to tighten monetary policy.
Brent crude, the global oil benchmark, continued to climb on Tuesday.
On the corporate front, shares of BP (LSE:BP.) rose after the UK energy major reported that first-quarter profit more than doubled year on year, supported by higher oil and gas prices.
Norwegian Air Shuttle (USOTC:NWARF) also gained ground after posting a smaller-than-expected operating loss, helped in part by hedging strategies to offset rising jet fuel costs.
Meanwhile, shares in Novartis (BIT:1NOVN) declined after the Swiss pharmaceutical company reported first-quarter core operating profit below market expectations.
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