European stocks open higher amid guarded hopes for Iran talks progress in Stock News 22/05/2026 European stock markets rose on Friday, as investors oscillated between optimism and pessimism around the trajectory of talks to end the Iran war. By 03:14 ET (07:14 GMT), the pan-European Stoxx 600 had risen by 0.5%, the Dax in Germany was higher by 0.4%, the CAC 40 in France was up by 0.4%, and the FTSE 100 in the U.K. had gained 0.3%. U.S. Secretary of State Marco Rubio suggested that discussions between Washington and Tehran have shown “good signs” of progress, while a senior Iranian official quoted by Reuters said that gaps in negotiations have narrowed. Still, sentiment remains fragile, especially after a separate Reuters report on Thursday said Iran’s Supreme Leader had issued a directive that no enriched uranium should leave the country, presenting a major fault line with demands from President Donald Trump. Against this backdrop, the Strait of Hormuz, a vital waterway for a fifth of the world’s oil, remains effectively shuttered, maintaining upward pressure on oil prices. Analysts have argued that, should the strait reopen, shares in Europe, which uses energy products that transit through the strait, would receive a lift compared to its global peers, Reuters reported. Meanwhile, economic data out of Europe was in focus. Consumer sentiment in Germany, the powerhouse of the Eurozone currency area, has displayed potential early indications of recovery, while overall economy was confirmed to have expanded by 0.3% in the first quarter of this year. However, as analysts at ING noted, European business activity has flashed warning signals around “the stagflationary effect” of the conflict in Iran, referring to an economic scenario in which inflation is elevated while growth is muted. Money markets are expecting the European Central Bank to hike interest rates later in 2026, in a bid to keep a lid on an energy-fueled inflation wave. In individual stocks, Swiss luxury good