European Shares Seen Higher On Iran Deal Hopes

(RTTNews) - European stocks are likely to open higher on Tuesday as oil prices fell from two-week highs amid hopes of a de-escalation in the West Asia conflict.

Higher bond yields may limit potential gains to some extent, with the yield on the U.S. 30-year bond edging up by one basis point to 5.13 percent on worries that the Federal Reserve may keep interest rates higher for longer. The Fed funds futures market is currently pricing in an increase in rates as soon as December.

Overnight, finance ministers and central bank chiefs from the G7 nations acknowledged mounting concerns over public debt and bond market volatility.

As economic uncertainties mount, investors also await earnings from tech titan Nvidia and retail giants like Walmart, Target and Home Depot this week for further direction.

Brent crude prices fell more than 2 percent toward $109 a barrel after U.S. President Donald Trump said there was a "very good chance" Washington and Iran could reach a deal to stop Tehran from developing a nuclear weapon.

Additionally, the United States has extended the waiver from sanctions on Russian oil stranded at sea on or before April 17 through June 17.

Ahead of a planned meeting at White House Situation Room to discuss military options, Iran has reportedly submitted a new 14-point proposal to end the war with the U.S.

Asian markets were mixed as technology heavyweights tracked overnight declines in their U.S. peers. Gold traded lower at $4,535 an ounce as the dollar steadied after declining in the previous session.

U.S. stocks ended mixed overnight as technology stocks extended losses from the previous session on concerns over surging oil prices and bond yields.

The 10-year Treasury yield climbed to its highest level since February 2025 early in the session after President Trump warned Iran the "clock is ticking" on a deal.

Trump later said he had paused a planned attack against Iran at the request of several Arab leaders, adding the U.S. military has been instructed to go forward with a full, large-scale assault on Iran in the event that an acceptable Deal is not reached.

While the Dow rose 0.3 percent, the S&P 500 finished marginally lower and the tech-heavy Nasdaq Composite shed half a percent.

European stocks reversed early losses to end higher on Monday after Iran said it responded to a new U.S. proposal through Pakistan mediation and that exchanges with Washinton were continuing.

As part of a revised negotiation framework with Tehran, it was said the U.S. has agreed to temporarily suspend sanctions on Iran's oil sector.

The pan European Stoxx 600 gained half a percent. The German DAX rallied 1.5 percent, France's CAC 40 edged up by 0.4 percent and the U.K.'s FTSE 100 climbed 1.3 percent.