European Stocks Rise as Oil Prices Fall After Trump Signals Iran De-escalation

European stocks advanced on Wednesday after reports that the U.S. and Iran are close to an agreement that could end the conflict in the Gulf. The White House expects an Iranian response on several key points, including a moratorium on nuclear enrichment, within the next 48 hours, according to Axios.

The two countries are preparing to publish a one-page memo that would lay out the framework for a peace agreement. A spokesperson for Iran's foreign ministry told CNBC that Tehran is evaluating a 14-article peace proposal from the U.S. In response to the developments, the pan-European Stoxx 600 index rose 2 percent.

London's FTSE 100 gained 2.2 percent, recovering from losses the previous day, while France's CAC 40 and Germany's DAX each climbed 2.3 percent. All major European bourses and sectors rose with the exception of oil and gas stocks. plan to guide ships through the Strait of Hormuz.

In a Truth Social post, Trump cited progress toward a complete and final agreement with representatives of Iran as the reason for the decision.

Markets recovered from volatility on Tuesday when a fragile ceasefire between the U.S. and Iran appeared close to collapse. The United Arab Emirates came under attack from Iranian drones and missiles that day, and the White House said it sank Iranian boats in the Strait of Hormuz.

The latest developments eased concerns over disruption to the vital shipping route for oil and gas. Iran's foreign minister met his Chinese counterpart in Beijing on Tuesday, according to state media. Trump's advisors have asked China to pressure Iran into reopening the Strait of Hormuz.

Nordisk raised its annual profit guidance after its blockbuster weight-loss drugs performed better than expected in the first three months of the year. Sales of its oral weight-loss drug in the U.S. reached 2.26 billion kroner, exceeding analyst estimates of 1.16 billion kroner compiled by Reuters.

Novo Nordisk shares opened 1.1 percent higher. Pandora shares rose 9 percent after the Danish jeweler reported first-quarter sales that beat analyst expectations. The company has faced pressure from U.S. import tariffs and higher silver prices. It said it would apply for tariff reimbursement under the International Emergency Economic Powers Act.

Investors in Europe were also scheduled to review earnings reports from Next, Ørsted and Flutter later on Wednesday.