European equity markets were poised to open higher on Wednesday, supported by growing optimism over a possible resolution to the Middle East conflict after reports that the US is engaging in talks with Iran. According to The New York Times, Washington has sent Tehran a 15-point proposal aimed at resolving the crisis, while Israeli media reported that the US is seeking a one-month ceasefire to create space for negotiations. Additional reports indicated that the US and regional mediators are discussing the prospect of convening peace talks with Iran as early as Thursday, although they are still awaiting an official response from Tehran.
Oil prices fell on the news, easing pressure on equity markets that have been weighed down by inflation concerns and the risk of further interest rate hikes. Against this backdrop, investors will also be closely watching UK inflation data and German business confidence indicators. In premarket trading, futures on the Euro Stoxx 50 and Stoxx 600 were up 1.1% and 0.9%, respectively.