European stocks rise and oil falls on hopes of Iran de-escalation
Updated
Updated · CNBC · May 6
European stocks rise and oil falls on hopes of Iran de-escalation
8 articles · Updated · CNBC · May 6
London's FTSE 100 is set to open 1% higher, while France's Cac 40 and Germany's Dax are on course to gain 0.8%.
The move followed Donald Trump's pause to "Project Freedom" in the Strait of Hormuz, after he said progress had been made towards a final agreement with Iran.
Markets were rebounding from Tuesday's volatility after attacks involving the UAE and Hormuz, while Iran's foreign minister met China's Wang Yi in Beijing.
With markets rallying on peace hopes, could recent attacks signal the deal's imminent collapse?
Is China a neutral peacemaker, or is it securing its own energy empire amid the Iran crisis?
U.S. Halts "Project Freedom" as Iran Talks Advance—Global Markets React to Strait of Hormuz Tensions
Overview
In early May 2026, President Trump announced a temporary pause to the U.S. military operation "Project Freedom," following significant progress in diplomatic talks with Iran, mediated by Pakistan and supported regionally. This pause sparked a global market rally and a sharp drop in oil prices, easing some inflation pressures caused by the Strait of Hormuz's closure since late February due to Iranian attacks and sea mines. The closure had previously driven oil prices above $120 per barrel, fueling inflation and slowing global growth forecasts. Despite the ceasefire hopes, tensions remain high with ongoing U.S. naval blockades, Iranian threats, and a worsening humanitarian crisis for stranded seafarers, leaving the situation fragile and uncertain.