European Stocks Rise Amid Speculation Over Potential US Lifting of Iran Oil Sanctions

European Stocks Rebound on US Proposal for Iran Oil Sanctions Waiver

European stocks erased earlier declines following a report that the US has proposed a temporary waiver on Iran oil sanctions until the final agreement. The Stoxx Europe 600 Index traded 0.04% higher as of 1:10 p.m. in London, having earlier fallen as much as 0.9%, as Iran's semi-official Tasnim agency reported the US proposal citing a source close to the negotiation team.

Brent crude held just under $109 a barrel, easing off the day's highs. Energy stocks were the day's top-performing sector, with Shell Plc gaining 1% and BP Plc adding 1.3%. The broader market is also getting some relief from a stabilization in bond markets. Yields on two-year and 10-year Treasuries traded steady to lower after a selloff that was caused by fears that higher oil prices will stoke inflation. German and UK 10-year yields slipped.

The Stoxx Europe 600 Index has underperformed US and Asian stocks since the Iran war started at the end of February, shedding about 5% since then. Oil has risen more than 50% in this period, with no real sign that the war will end soon, investors remain on edge.

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Technology stocks outperformed Monday, supported by Technoprobe SpA's continued surge after last week's blowout results. Ryanair Holdings Plc dropped 3% after the budget airline warned of rising costs this year if unhedged jet fuel prices remain at current levels. Elsewhere, Sonova Holdings AG advanced 4.7% after the hearing-aid maker reported full-year profit that beat expectations due to strong growth across its wholesale and retail businesses.