MARKET WRAPS

Stocks:

European equities were rallying and oil stabilized below $100 after Trump signaled the war with Iran was nearing its end.

The Stoxx 600 was on course Tuesday to snap a three-day losing streak, with all major sectors rising in early trade except for energy .

Trump's remarks that the conflict with Iran was "very much complete" offered relief to global markets roiled by surging oil prices.

The possible easing of oil-related sanctions on Russia and discussions over the potential release of strategic reserves also helped to bring down the price of oil.

Further supporting risk appetite, Emmanuel Macron said France and its allies were planning to escort vessels through the Strait of Hormuz.

While Trump's comments "provided some cautiously optimistic tunes," Danske Bank added, "We remain cautious on seeing more definitive signs that traffic picks up through the Strait of Hormuz again , easing pressure on energy markets."

ING also struck a wary tone.

"Expect risk to get bought for a bit, but don't get too carried away with this."

BNP Paribas said the continuing Middle East conflict was likely to be a short-term rather than long-term event .

"But we caveat our view with the acceptance that events continue to move fast and in a somewhat unpredictable manner."

Meanwhile, German exports slipped in January , tracking a decline in industrial orders and output as momentum slowed at the start of the year.

Shares on the Move

Airlines were making gains after the price of oil dropped.

J.P. Morgan said the oil-price spike might offer an advantage to European flag carriers , which are largely hedged on fuel, versus their U.S. counterparts.

However, a long Iran war and sustained higher oil prices will have a negative impact for the whole sector due to lower consumer spending power and reduced economic growth.

Economic Insight

The Bank of England could cut interest rates in the coming months, lowering the bank rate to 3.0% by the end of 2026 , according to Berenberg.

U.S. Markets:

Stock futures were gaining after Trump's comments about the duration of the Iran war perked up global markets.

Traders are awaiting U.S. inflation releases, with CPI coming Wednesday and PCE figures on Friday.

Earnings are due from Oracle and Kohl's.

Forex:

The dollar fell against a basket of currencies as oil prices retreated following Trump's remarks.

The pullback also came as finance ministers of the G7 economies said they were ready to take the necessary action to support energy supplies.

ING said the dollar's declines were likely to be limited .

It said what matters most is a reopening of the Strait of Hormuz and a restart of oil production across the Middle East.

"Until investors receive headlines on that score, presumably relating to some kind of ceasefire, we doubt the dollar is going to quickly hand back all the gains made over the last two weeks."

The euro strengthened against the dollar.

"It's not clear that the euro-dollar needs to rally much more today unless we see some material progress towards a ceasefire," ING said.

The euro has come under pressure as higher oil prices from the Middle East conflict raised concerns about negative impact on the eurozone's terms of trade.

Offsetting the impact slightly, however, is the market reassessing its European Central Bank interest-rate expectations , with a chance of a rate rise now priced in this year, LSEG data show.

Sterling rose to a one-month high against the euro and a one-week high versus the dollar.

The drop in oil prices has eased concerns about a severe inflation shock .

Bonds:

Treasury yields declined , reversing the recent spike induced by higher oil prices.

ING expects short-dated inflation-linked bonds to get sold, volatility to calm and nominal bond yields to fall for a bit on a reversal trade.

"But don't expect a dramatic structural rally in bonds."

Morgan Stanley Wealth Management said Treasurys were already sounding some caution with the magnitude of last week's yield rises.

This suggests possible risks of inflation, overheating growth and renewed pressure on debt and deficits, given the costs of a potentially prolonged conflict in the Middle East. Labor market anxiety remained high as well, the wealth manager added.

Eurozone government bond yields slid , led by BTPs and OATs.

Bond yields globally are falling as inflation fears moderate for now.

Energy:

Oil prices retreated sharply, extending losses from the previous session.

"Trump's words will only go so far," ING said.

"Ultimately, the market will need to see a resumption of oil flows through the Strait of Hormuz to sustain a move lower in oil prices."

Trump also said the U.S. would be removing oil-related sanctions on certain countries as a way to lower prices.

However, analysts say that relaxing sanctions on Russia would probably do little to boost global supply, given the country has already been navigating around existing restrictions.

Kudotrade said oil prices will likely continue to be volatile .

"Any prolonged restriction or closure of the Strait of Hormuz would significantly limit tanker traffic, forcing oil producers to curb output further due to storage constraints."

Capital Economics said the most likely scenario is that the Iran conflict will be limited to a couple of weeks and that prices fall sharply back to $65/bbl.

But it added that Brent crude could rise to an average of $150/bbl over the next six months if energy infrastructure in Gulf and Iran were severely damaged.

DBS Group Research said oil prices were likely to remain structurally higher than pre-Middle East-conflict levels , even if tensions eased.

Gas

European natural-gas prices plunged as fears of prolonged disruptions in the Middle East eased.

Still, Europe remained in a vulnerable position , with storage tanks heavily depleted after winter and LNG supply severely disrupted.

"The cessation of production from Qatar, one of the biggest natural gas producers in the world, is likely to have wide ranging ramifications for the market over the coming months."

Metals:

Gold prices rose on a softer dollar and easing concerns over high energy costs and inflation.

"Powell and the Fed are watching the same crude charts as everyone else ahead of next week's policy decision," Peak Trading Research said.

Copper

LME three-month copper rose . ING said tight conditions supporting prices in recent months may be starting to ease.

Copper prices have come under pressure recently as macroeconomic headwinds combine with softer physical demand signals.

Iron Ore

Prices slipped in Asian trading. Nanhua Futures said iron ore is entering a seasonal period of weak supply and demand .

EMEA HEADLINES

Saudi Aramco Says Ras Tanura Refinery Restarts After Drone Attack

Saudi Arabia's national oil company said its Ras Tanura refinery was restarting after an Iranian drone attack last week led to a shutdown, as the energy giant outlined plans to boost payouts to shareholders.

Saudi Aramco said Tuesday that all production areas were safe and that its Ras Tanura complex-home to an oil refinery and a large offshore oil-loading facility-was starting up following a precautionary shutdown.

Volkswagen Expects Margins to Improve Despite Another Challenging Year

Volkswagen expects profitability to improve this year as it continues to focus on cutting costs in what is expected to be another challenging 12 months.

The German automaker said it expects an operating margin of between 4% and 5.5% this year, with revenue landing between flat and 3% above last year's figure.

Repsol to Grow Shareholder Returns Under 2028 Plan

Repsol said it will grow shareholder returns through 2028 under a plan that balances growing oil-and-gas production and spending on low-carbon projects.

The Spanish energy company said Tuesday that it would return around 3.6 billion euros ($4.19 billion) to shareholders via cash dividends through to 2028. This will be complemented by share buybacks, with dividend per share growing by more than 6% a year, it said.

Renault to Refresh Car Lineup in International Push

Renault said it plans to launch 36 new models by the end of this decade, as the French carmaker looks beyond Europe to drive growth at a time when competition in its core markets is heating up.

In the first strategy update since Francois Provost took the wheel last year after former boss Luca de Meo moved to luxury group Kering, Renault outlined plans to step up its international push.

Lindt Shares Drop as Chocolatier Lowers Guidance on Geopolitical Unrest

Lindt & Spruengli shares slumped after the Swiss chocolatier lowered its guidance for 2026, citing geopolitical uncertainty.

Lindt lowered its expectations for 2026 organic sales growth to 4%-6%, down from previous medium- to long-term targets of 6% to 8%. Management said the adjustment was because of geopolitical uncertainties. For 2025, Lindt's organic sales growth was 12.4%.

GLOBAL NEWS

Oil Falls, Stocks Gain as Trump Comments Prompt Cautious Optimism

Oil retreated, U.S. stock futures rose and Treasury yields slid as traders took encouragement from President Trump's comments that the conflict in Iran will end "very soon."

Brent crude extended Monday's sharp reversal to trade just above $90, though prices were still significantly elevated from pre-war levels. Shipping through the Strait of Hormuz remains effectively blocked, while Iran's foreign minister ruled out negotiations.

German Exports Fall, Extending Weak Start to 2026

German exports slipped in January, tracking a decline in industrial orders and output as momentum in Europe's largest economy faltered at the start of the year.

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March 10, 2026 06:59 ET (10:59 GMT)

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