European Shares Seen Higher As Tensions Ease Over Strait Of Hormuz

(RTTNews) - European stocks may open on a buoyant note Tuesday as a sharp decrease in oil prices following a ceasefire declaration between Iran and Israel by former U.S. President Donald helped ease concerns surrounding the outlook for inflation and interest rates. After launching multiple missiles at Israel, Iran hinted that the truce deal had come into effect. So far, there has been no official statement from Israel on the ceasefire agreement.

Asian markets rallied and futures on Wall Street jumped as fears of a major energy shock eased.

Oil prices fell sharply to their lowest levels in more than a week in the absence of immediate disruption to global oil supply.

Brent crude futures now trade below pre-Iran-Israel conflict levels as the ceasefire agreement removed the immediate threat to the vital Strait of Hormuz shipping lane.

The dollar index fell to a one-week low and gold traded below $3,350 per ounce ahead of Fed Chair Jerome Powell's two-day Congressional testimony starting tonight.

U.S. stocks ended with gains overnight as oil prices slumped and Federal Reserve Vice Chair Michelle Bowman said she favored a rate cut "as soon" as July if inflationary pressures remain contained.

President Trump downplayed Iran's missile strike on the Al Udeid Air Base in Qatar. He said 13 of 14 missiles were intercepted and emphasized there were no casualties.

Trump also thanked Iran for giving Washington advance notice of the attack, adding Iran can now proceed to peace and harmony in the region, and he would enthusiastically encourage Israel to do the same.

The Dow and the tech-heavy Nasdaq Composite both climbed around 0.9 percent, while the S&P 500 rallied 1 percent.

European stocks fell modestly on Monday as investors waited for Iran's response to the weekend U.S. air strikes on its nuclear sites.

The pan-European STOXX 600 closed 0.3 percent lower. The German DAX dipped 0.4 percent, France's CAC 40 shed 0.7 percent and the U.K.'s FTSE 100 slid 0.2 percent.