LONDON — European stocks opened sharply higher on Wednesday, as global markets breathed a sigh of relief after the U.S. and Iran agreed to a conditional ceasefire deal.
The pan-European Stoxx 600 index was seen 3.4% higher shortly after 10:00 a.m. in London, with all sectors besides oil and gas in the green.
Autos, miners and travel stocks led gains, rising 5.6%, 6%, and 7.3%, respectively.
Disruption from the war was felt in its LNG production, which fell from 948,000 barrels of oil equivalent in the fourth quarter of 2025 to 880,000-920,000 in the first three months of 2026.
“While the big increase in energy prices should boost Shell’s profit, the company also has a significant operational footprint in the Middle East which has been disrupted by the fighting,” said Dan Coatsworth, head of markets at AJ Bell.
“This dichotomy is reflected in Shell’s latest update, with gas production hit by this disruption but refining margins and oil trading revenue seeing an uplift.”
Global markets rallied and oil prices plunged overnight after U.S. President Donald Trump said late on Tuesday that he had agreed to suspend planned attacks on Iranian infrastructure for two weeks.
The move was “subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz,” he wrote on Truth Social.
Iranian Foreign Minister Abbas Araghchi said in a post on X on behalf of the country’s Supreme National Security Council that Tehran’s armed forces will “cease their defensive operations.”
Asia-Pacific markets rallied overnight while U.S. stock futures jumped on news of the ceasefire. Oil prices also plunged below $100 a barrel upon news of the deal, which came after Trump had threatened to order the destruction of Iran’s “whole civilization” unless it reopened the Strait of Hormuz.
However, a number Middle Eastern countries continue to report incoming missiles and drones from Iran on Wednesday, triggering air defenses across the Gulf.
Data releases on Wednesday include German factory orders and EU retail sales figures.
— CNBC’s Kevin Breuninger contributed to this market report.
