European markets head for lower open amid Iran peace talks uncertainty

• U.K. index projected to open 0.2% lower, Germany down 0.6%, France down 0.4%, and Italy down 0.7% according to IG data
• Iranian Foreign Minister confirmed message exchanges through mediators but denied direct negotiations with the U.S., while Iran rejected U.S. ceasefire terms
• G7 foreign ministers meeting in France on Thursday and Friday will address the Iran and Ukraine conflicts, with delegations from Saudi Arabia, Brazil, India, South Korea and Ukraine attending

Summary: European Markets Face Lower Open on Iran Peace Talk Uncertainty

Market Overview:

European markets are projected to open lower Thursday, with the UK's index expected down 0.2%, Germany's DAX down 0.6%, France's CAC down 0.4%, and Italy's market down 0.7%, according to IG data.

Key Driver:

Investor uncertainty stems from conflicting statements between Washington and Tehran regarding Middle East peace negotiations. The U.S. claims talks over a proposed peace plan are underway, while Iran denies direct interaction with Washington.

Iran's Position:

Iranian Foreign Minister Abbas Araghchi confirmed Wednesday that officials are working to end the war but emphasized Tehran has had no direct negotiations with the U.S. He clarified that message exchanges through mediators "does not mean negotiations with the U.S." Iranian state media reported the Islamic Republic would reject a U.S. ceasefire offer, instead presenting a five-point counter-proposal demanding Tehran's control over the Strait of Hormuz.

Market Impact:

Asian markets showed mixed performance in overnight trading, while European markets remained relatively unchanged early Thursday. The uncertainty surrounding the geopolitical situation continues to weigh on investor sentiment.

Upcoming Events:

Market participants will closely monitor the G7 foreign ministers meeting in France (Thursday-Friday), where conflicts in Iran and Ukraine top the agenda. Delegations from Saudi Arabia, Brazil, India, South Korea, and Ukraine will attend.

Economic Data:

Thursday's calendar includes earnings reports from European companies and releases of German, French, and Italian business and consumer confidence data.

The ongoing diplomatic uncertainty and potential implications for regional stability, particularly regarding the strategic Strait of Hormuz, continue driving market volatility.