European Shares Recover 0.3% Amid Supply Fears Following Strait Of Hormuz Closure

European shares edged higher on Tuesday, recovering from multi-month lows as investors weighed conflicting signals from the Middle East. The pan-European STOXX 600 index rose 0.3% to 578.45 points by 08:03 GMT, after hitting its lowest level since November 2025 in the previous session. Energy stocks led the modest recovery, tracking a spike in crude prices following Iran’s near-total closure of the Strait of Hormuz, a vital artery for global oil supplies.

Market sentiment fluctuated after U.S. President Donald Trump announced a five-day delay in strikes on Iranian energy infrastructure, citing "productive talks"—a claim Tehran dismissed as "psychological warfare." While energy concerns persisted, corporate deal-making provided an additional lift; Spain’s Puig surged 16% on potential merger talks with Estée Lauder, while Germany’s SAP dropped 2.2%. Market participants are now shifting their focus to preliminary Eurozone purchasing managers' index (PMI) data for March, seeking further clarity on the region’s economic trajectory.