Global Market | European shares inch up as investors assess US-Iran agreement

European shares inched up at open on Tuesday, following a rally in the previous session, as investors assessed the preliminary agreement between the U.S. and Iran, weighing prospects ‌for the resumption ⁠of ⁠oil supplies through the Strait of Hormuz.

The pan-European STOXX 600 index edged 0.3% higher to 636.01 points by 0717 GMT, with the industrial goods & services index's 1.2% rise leading gains.

The benchmark closed at a record high on Monday following a premliminary agreement between the U.S. and Iran ​to end the three-month long conflict and reopen ⁠Strait of ‌Hormuz, a crucial global oil supply route.


Oil prices extended declines on Tuesday, with Brent Crude trading near $82 a ⁠barrel, easing some concerns over inflation that had pushed expectations of further monetary tightening.

The European Central Bank lifted ​interest rates by 25 basis points last week to combat price pressures, and traders are pricing in another hike by year-end, according to LSEG-compiled data.

Central banks elsewhere are also lifting borrowing costs. The Bank of Japan raised borrowing costs to a 31-year ‌high on Tuesday to counter price pressures linked to energy. Rate decisions by the U.S. Federal Reserve and the Bank of England later this ⁠week are also on the radar.

AI-linked stocks, which have swung sharply in recent sessions, also declined. The broader tech index slipped 0.2%.

STMicroelectronics fell ​2.5% after announcing plans to issue convertible bonds worth $1.5 billion.

UniCredit gained 2.8% after Germany rejected the Italian lender's offer to buy Commerzbank shares, citing a low price and support for an independent Commerzbank. Commerzbank's shares were up 1%.