European markets react to Iran-U.S. ceasefire deal

LONDON — European stock markets are expected to open with a sharp rise on Wednesday after the United States and Iran reached a conditional ceasefire agreement.

of england FTSE100 Germany’s index is expected to open with a 3% increase DAX 5% higher, France CAC 40 Italy, up 4.5% FTSE MIB 5.3% higher, according to IG’s data.

Global markets rebounded and oil prices fell overnight after US President Donald Trump said late Tuesday that he had agreed to suspend planned attacks on Iran’s infrastructure for two weeks.

He said the move was “conditional on the Islamic Republic of Iran’s acceptance of the COMPLETE, IMMEDIATE and SAFE OPENING of the Strait of Hormuz.” He wrote at Truth Social.

Iranian Foreign Minister Abbas Araghchi, in a post he made on behalf of the country’s Supreme National Security Council, said that Tehran’s armed forces “Cease defensive operations.”

Asia-Pacific markets recovered overnight, while US stock futures jumped following ceasefire news. Oil prices also fell below $100 per barrel on the news of the agreement, which came after Trump threatened to destroy Iran’s “entire civilization” if it did not reopen the Strait of Hormuz.

But some Middle Eastern countries continued to report Wednesday that missiles and drones from Iran had triggered air defenses across the Gulf.

Earnings coming in on Wednesday Shelland data includes German factory orders and EU retail sales figures.

— CNBC’s Kevin Breuninger contributed to this market report.