Europe open: Shares up as Iran war peace talk optimism holds

(Sharecast News) - European shares opened higher on Thursday after a strong showing in Asia as investors bet that peace talks between Iran and the US could make progress despite Donald Trump's continued threats to resume bombing.

The pan-regional Stoxx 600 index was up 0.19% to 624.32 at 0812 BST with most major bourses following suit except for the UK's FTSE 100 which fell 0.24% in dearly deals.

Tehran and Washington on Wednesday were evaluating proposals to end the conflict which started on February 27, sending shares surging and hammering crude oil prices.

However, early optimism was tempered when the US president said a deal was not finalised and threatened to resume military strikes if it did not comply.

"If they don't agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before," the president wrote on social media.

Oil prices were below the $100 mark - but only just - with Brent crude currently sitting at $99 a barrel.

"The headlines have not flipped yet this morning - at the time of writing, the major headline is still that the US and Iran 'weigh potential deal'," said Swissquote analyst Ipek Ozkardeskaya.

"US crude briefly traded below $90 yesterday on the news, and Brent below $97. Considering that the price was flirting with the $115 level just two days ago, seeing levels below the psychologically important $100 mark probably got investors ahead of themselves."

"Given the chaotic diplomacy, and given how the US lost control of the situation - and given the earlier unfounded announcements of progress - I would like to say: 'I will clap when Iran confirms'. Because the longer this drags on, the greater the risk of oil shortages and sharper spikes in oil prices.

"And a 180-degree turn in the situation is just one headline away. Just one headline."

In another deluge of corporate earnings and endless trading updates, Zealand Pharma topped the Stoxx with a 15% gain despite reporting a first quarter loss.

Drinks maker Campari slumped after full-year guidance underwhelmed investors. The Italian firm said it expected underlying sales growth of around 3%, in line with that achieved in 2025.

German specialty chemicals company Lanxess fell sharply after first quarter results.

Reporting by Frank Prenesti for Sharecast.com