European Stocks Rise, Oil Drops on US-Iran Deal to Reopen Hormuz

European equity indices continued to push higher during Tuesday's morning session, building on a sharp relief rally from the previous day.

The rally was driven by reports that the United States and Iran are set to sign an agreement to end hostilities and reopen the strategically vital Strait of Hormuz by the end of the year. This development is seen as reducing geopolitical risk and potentially boosting global trade flows.

Oil prices declined as traders priced in the likelihood of resumed oil shipments through the strait, which would increase supply. Separately, SpaceX continues to perform strongly, reflecting ongoing investor optimism about the aerospace sector.