Europe open: Shares surge, oil falls as Trump claims progress on Iran deal

(Sharecast News) - European shares surged and oil prices fell at the open on Wednesday as US President Donald Trump claimed "great progress" was being made on a peace deal with Iran.

The pan-regional Stoxx 600 index was up 1.42% to 618.4 at 0856 BST with all major continental bourses higher.

Trump said he was pausing his so-called 'Project Freedom' to protect ships traversing the vital Strait of Hormuz in order to enable "complete and final agreement" with Tehran.

Crude oil prices fell sharply, with Brent crude down 2.75% to $106.85 a barrel.

"Trump announced "Project Freedom" on Sunday, a plan to guide ships through the blocked Strait of Hormuz. The risks became apparent almost immediately, with US and Iranian forces exchanging fire in the contested waterway and Iranian missiles intercepted over the UAE for the first time in weeks.," said Anna Macdonald, investment strategy director at Hargreaves Lansdown.

"(He) then paused Project Freedom on Tuesday evening, citing progress on a deal. Whether that progress is real or tactical is, as ever, unclear."

In equity news, Demant shares surged after Nordea raised its target price on the stock to 250 Danish kronor from DKK 240. Sydbank also upgraded to 'buy' from 'hold' on Tuesday.

Pandora shares sparkled as the Danish jeweller reported first quarter growth in line with expectations and confirmed full-year targets.

Novo Nordisk and BMW also gained after results.

Oil stocks fell in line with a weaker oil price.

Reporting by Frank Prenesti for Sharecast.com