Shares wavered and oil prices fell on Tuesday as Tehran offered an encouraging response during talks with US officials in Geneva on Iran’s nuclear programme, following days of escalating rhetoric from President Donald Trump.
Oil had initially risen after Trump intensified threats towards Iran, a major crude producer, but Iranian Foreign Minister Abbas Araghchi said that “a new window of opportunity has opened.”
“We are hopeful that negotiations will lead to a sustainable and agreed solution,” he added, while noting that “Iran remains fully prepared to defend itself against any threat or act of aggression.”
West Texas Intermediate (WTI) fell 0.9 per cent to $62.33 per barrel after earlier rising 1.5 per cent, while international benchmark Brent North Sea Crude slipped 1.8 per cent to $67.42.
“Speculation is mounting that Iran could agree to dilute its most highly enriched uranium in exchange for the full lifting of financial sanctions, but it is unclear whether that would be enough to seal a deal between the two sides,” said Aarin Chiekrie of Hargreaves Lansdown.
Wall Street oscillated during the session but ultimately closed slightly higher.
“Insurance brokers, wealth advisers, real estate services, and logistics were all in the firing line last week, and investors are cautiously monitoring which sectors might be affected next by AI developments,” Chiekrie added.
European stocks closed in positive territory, with London and Frankfurt up 0.8 per cent, while Tokyo fell and Chinese markets remained closed for the Lunar New Year.
Official data showed UK unemployment rising to a five-year high, with the 5.2 per cent reading for the final quarter of last year increasing the likelihood of a Bank of England interest rate cut next month.
The US dollar weakened against the yen.
Germany, Europe’s largest economy, is unlikely to rebound in 2026 amid geopolitical uncertainty, high costs, and weak domestic demand, according to the country’s Chamber of Industry and Commerce. Germany returned to weak growth in 2025 after two years of recession.
Shares in German agrochemical giant Bayer rose almost eight per cent after it revealed that subsidiary Monsanto had proposed a class settlement of up to $7.25 billion to resolve claims that the Roundup weedkiller causes blood cancer, potentially drawing a line under years of costly litigation.
Key figures at around 2200 GMT
New York
Dow: up 0.1 per cent at 49,533.19 (close)
S&P 500: up 0.1 per cent at 6,843.22 (close)
Nasdaq: down 0.1 per cent at 22,578.38 (close)
London / Paris / Frankfurt
FTSE 100: up 0.8 per cent at 10,556.17 (close)
CAC 40: up 0.5 per cent at 8,361.46 (close)
DAX: up 0.8 per cent at 24,998.40 (close)
Asia
Nikkei 225: down 0.4 per cent at 56,566.49 (close)
Hang Seng Index: closed for holiday
Shanghai Composite: closed for holiday
Currencies
Euro/dollar: flat at $1.1854
Pound/dollar: down at $1.3568 from $1.3630
Dollar/yen: down at 153.29 yen from 153.48 yen
Euro/pound: up at 87.37 pence from 86.98 pence
Oil
West Texas Intermediate: down 0.9 per cent at $62.33 per barrel
Brent North Sea Crude: down 1.8 per cent at $67.42 per barrel
