European Shares Seen Broadly Lower On Middle East Truce Doubts

(RTTNews) - European stocks are seen opening lower on Thursday as confusion prevailed over the U.S.-Iran truce terms.

Uncertainty is growing around the ceasefire as both sides appear to be working with different versions of the peace proposal.

Sporadic fighting continued throughout the Middle East, including in Lebanon, where Israel's military launched what it described as its most powerful attacks on Wednesday, killing hundreds of people and creating panic.

Tehran, which has emerged from the battle with control of the Strait of Hormuz, called U.S. talks 'unreasonable' following Israeli strikes.

Several strikes were reported across the Gulf region, with Saudi Arabia's East-West Pipeline, a critical artery bypassing the Strait of Hormuz, reportedly hit in an Iranian drone attack on Wednesday.

White House Press Secretary Karoline Leavitt accused Iran of saying "one thing publicly" while communicating something very different behind closed doors, raising questions about whether Washington was misled in high-stakes negotiations.

Iran has halted the passage of oil tankers through the Strait of Hormuz after accusing the United States of violating three clauses of the 10-Point Proposal.

These include the denial of the Islamic Republic's right to enrich uranium, Israel's continued attacks on Lebanon and a drone's entry into Iranian airspace.

Amid a sharp escalation in violence, U.S. Vice President has clarified that the ceasefire agreement did not include Lebanon, calling the confusion a "misunderstanding" by Iranian negotiators.

U.S. President Donald Trump announced that the U.S. military will remain in and around Iran until the "real agreement" on a ceasefire "is fully complied with", warning of more conflict otherwise.

"All US Ships, Aircraft, and Military Personnel, with additional Ammunition, Weaponry, and anything else that is appropriate and necessary for the lethal prosecution and destruction of an already substantially degraded Enemy, will remain in place in, and around, Iran, until such time as the REAL AGREEMENT reached is fully complied with. If for any reason it is not, which is highly unlikely, then the 'Shootin' Starts,' bigger, and better, and stronger than anyone has ever seen before. It was agreed, a long time ago, and despite all of the fake rhetoric to the contrary - NO NUCLEAR WEAPONS and, the Strait of Hormuz WILL BE OPEN & SAFE. In the meantime, our great Military is Loading Up and Resting, looking forward, actually, to its next Conquest. AMERICA IS BACK!"

The ?heads ?of the World Bank, International Monetary Fund (IMF) and ?the UN's World Food Program (WFP) have warned that the burden from sharp increases in food, fuel and fertilizer prices would fall most heavily on the world's most vulnerable populations.

Asian markets were broadly lower in cautious trade as U.S. President Trump's ceasefire push faced scrutiny.

The dollar index recovered after a sharp fall yesterday, while gold prices were marginally lower at $4,715 an ounce after a two-day gain.

Brent crude prices rose nearly 3 percent above $97 a barrel after a 13 percent plunge in the previous session.

With oil prices still around 40 percent higher than pre-conflict, investors fear the inflationary fallout will last for long time yet.

Overnight, U.S. stocks rallied to reach their best closing levels in about a month after the U.S., Israel and Iran agreed to a two-week ceasefire, subject to Tehran agreeing to the complete, immediate and safe opening of the Strait of Hormuz.

Trump said the U.S. has received a 10-point proposal from Iran that he believes is a "workable basis on which to negotiate" and that the two-week ceasefire will allow the agreement to be finalized and consummated.

In economic news, minutes from the Federal Reserve's last policy meeting showed a growing number of members felt a rate hike might be needed in future as inflation rates climb beyond target thresholds.

The Dow spiked 2.9 percent, the tech-heavy Nasdaq Composite surged 2.8 percent and the S&P 500 climbed 2.5 percent.

European stocks surged on Wednesday in a broad relief rally as the U.S.-Iran ceasefire deal sent oil prices crashing, easing inflation fears.

The pan European Stoxx 600 climbed 3.9 percent. The German DAX skyrocketed 5.1 percent, France's CAC 40 soared 4.5 percent and the U.K.'s FTSE 100 added 2.5 percent.