European Shares Set For Strong Open Amid Easing US-Iran Tensions

European stocks are set to open higher on Monday as US-Iran tensions ease, boosting hopes for renewed diplomacy in the Middle East. Oil prices fell sharply, with Brent crude futures down more than 5% toward $83 a barrel after President Donald Trump said a fresh attack was called off and that an agreement is close. Peace talks are expected to resume, including after Middle Eastern allies urged Washington to prioritize diplomacy, with Trump also linking renewed efforts to reopening the Strait of Hormuz. Iranian President Masoud Pezeshkian said a US memorandum could become a cornerstone of Tehran’s future foreign relations, while talks with Oman over Strait management are “final stages.” Traders also look ahead to a busy earnings week and watch FX moves after yen-buying intervention by Japan and the US.