The deadline for the Iran war disrupts the market, European stocks rise

Berlin, Germany, March 16, 2026：On the day, a truck and a cyclist passed by a gas station in Berlin, where the fuel prices displayed in the station were far above €2.00 per liter. Since the outbreak of the joint US and Israel military conflict with Iran, German fuel prices have surged sharply, and the German government is considering introducing a new bill to curb the rise in fuel prices. The increase in Germany’s fuel prices is the highest in Europe.

On Tuesday, investors waited in silence for President Trump’s final reopening deadline for the Strait of Hormuz set for Iran (to expire later that evening), and European stock markets rebounded from the declines earlier in the day.

Shortly after 9:30 a.m. London time, the European Stoxx 600 index rose 0.6%. The UK FTSE 100 index rose 0.4% in early trading, Germany’s DAX rose 0.8%, and France’s CAC 40 rose 1.3%.

After ending a 4-day Easter holiday, European markets resumed trading, following mixed moves at Thursday’s close.

Investors found it difficult to absorb the US government’s contradictory statements on prospects for resolving the conflict. Trump threatened that if a peace agreement could not be reached within 24 hours, he would strike Iran’s civilian infrastructure, but at the same time he said that Iran’s leadership is “negotiating in good faith.”

Trump reiterated his demand that Iran reopen the Strait of Hormuz by 8:00 p.m. Eastern Time on Tuesday — restoring navigation through this key global energy supply route. He warned that if the requirement was not met by the deadline, the US military would destroy all of Iran’s bridges and power plants within 4 hours.

As for corporate news, shares of Universal Music Group surged 13.5% on the back of a $64 billion acquisition offer from Pershing Square.

Under the terms of the deal, Universal Music will merge with a flagship hedge fund owned by billionaire Bill Ackman to form a new company, which is expected to be listed on the New York Stock Exchange, with the transaction expected to be completed by the end of this year.

On Tuesday, Asia-Pacific markets saw intense turbulence, with major stock indices turning from gains to losses in early trading, as uncertainty about the war weighed on investor sentiment.

Investors will also watch the UK and Eurozone March manufacturing PMI data to be released later on Tuesday evening, to gauge the latest impact of the Iran war on the European economy.

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Responsible editor: Guo Mingyu