European stock markets opened higher on Wednesday, in line with a more optimistic mood in Asia, driven largely by hopes that the US may be engaged in talks with Iran — even as Washington deploys thousands of troops to the Middle East, with no firm decision yet on ground deployment.
US President Donald Trump said that progress was being made in talks with Iran this week, and his postponement on Monday of a deadline to "obliterate" Iran's power plants over the reopening of the Strait of Hormuz has also fueled optimism that an end to the Iran war could come soon.
