European stocks to open lower as traders assess chances of Iran peace deal

Oil prices gained more than $1 a barrel after having dropped sharply a day before.

Oil prices bounced 2% and Treasury ‌yields edged higher as the strike added to the conflicting signals over the talks after President Donald Trump dismissed an Iranian report of a deal to restore traffic through the Strait of Hormuz.

The rally came on Wednesday as negotiations continued between Washington and Tehran, with markets betting that a deal would reopen the vital Strait of Hormuz, easing oil and gas supply concerns and soothing the deep uncertainty afflicting the global economy.

However, the White House called an Iranian state television report about a framework deal with the US to end the Middle East war a “complete fabrication”.