25.08.202611:07:46UTC+00European Stocks Extend Gains as Iran Concerns Ease

European stocks extended gains on Tuesday afternoon, with both the STOXX 50 and the broader STOXX 600 up roughly 0.6%, as investors reacted positively to a US sanctions package on Iran that proved milder than anticipated. Oil prices continued to decline amid perceptions of limited near-term threats to global crude supply, while defense stocks outperformed. Melrose Industries led sectoral advances, surging more than 8% after the GKN Aerospace owner said it expects to restore full production at its Garden Grove facility by September 28. On the macroeconomic front, German business sentiment climbed to a one-year high in August, and second-quarter 2026 German GDP growth was revised up to 0.3% from an initial estimate of 0.2%, driven by stronger exports. Market focus is now turning to Nvidia’s upcoming earnings, which are expected to provide further insight into the resilience of AI-related demand. Investors are also closely watching Fed Chair Kevin Warsh’s first major address at the Jackson Hole symposium for any commentary on the recent rise in bond yields and signals regarding the central bank’s policy stance and independence.