European Stocks Climb Higher On Israel-Iran Ceasefire Optimism

European stocks climbed higher Tuesday on optimism over a potential ceasefire between Israel and Iran, ahead of Federal Reserve Chair Jerome Powell’s upcoming appearance before Congress. 

At 03:05 ET (07:05 GMT), the DAX index in Germany gained 1.9%, the CAC 40 in France climbed 1.9% and the FTSE 100 in the U.K. rose 0.6%. 

Israel-Iran ceasefire boosts sentiment

U.S. President Donald Trump said earlier Tuesday that his recently announced ceasefire between Israel and Iran was now in effect, potentially marking an end to renewed hostilities between the Middle Eastern powers. 

"THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!" Trump said in a post on Truth Social.

The U.S. president had earlier indicated the possibility of a truce, started by a 12-hour initial ceasefire period initiated by Iran, followed by Israel joining the ceasefire at the 12th hour.

The announcement comes days after the U.S. bombing of three Iranian nuclear sites. Tehran also retaliated on Monday by launching missile attacks at the U.S. airbase in Qatar.