Stocks Rebound on Signs of Iran Backchannel Talks – Europe Market Wrap
Equities moved higher after a report said Iran had reached out indirectly to the US to explore talks aimed at ending the Middle East conflict, raising optimism that the war may not drag on. The dollar snapped a two-day advance.
S&P 500 futures climbed 0.2%. According to the New York Times, operatives tied to Iran’s intelligence ministry used informal channels to approach the Central Intelligence Agency a day after joint US-Israeli strikes began. The report noted that officials on both sides doubted either Washington or Tehran was prepared to pursue a swift de-escalation.
Brent crude pulled back from earlier highs to trade below $83 a barrel. European equities extended gains to 1.4%. Pressure in global bond markets eased, though the 10-year Treasury yield edged up two basis points to 4.08%. Bitcoin rallied to $71,000, signaling a modest return in risk-taking.
Financial markets have faced several sessions of turbulence since the US-Israeli assault on Iran unsettled the region, disrupting energy flows and damaging key facilities. Oil remains central to investor focus as traders assess President Donald Trump’s proposal to insure and escort vessels moving through the Strait of Hormuz, where shipping activity has nearly stalled.
Earlier, Asia’s main equity gauge suffered its sharpest drop in almost a year, led by an unprecedented selloff in South Korean stocks. While the US is seen as relatively insulated as a major energy producer, analysts note that economies such as China, South Korea and Japan are far more reliant on Middle Eastern crude supplies.
