European stocks opened higher Tuesday as traders navigate geopolitical tensions and Middle East developments. The Stoxx 600 rose around 0.5% by early London trading. President Trump announced he ordered military leaders to cancel a scheduled Iran attack following requests from Qatar, Saudi Arabia, and the UAE, signaling potential diplomatic negotiations. Oil prices fell sharply on the news, with Brent crude down 2.04% to $109.81 per barrel and WTI down 1.12% to $107.44. Meanwhile, the UK unemployment rate unexpectedly rose to 5% in March from 4.9%, raising concerns about labor market weakness amid geopolitical uncertainty. Economists warn the Iran conflict could constrain hiring demand and growth. The Bank of England faces pressure on rate decisions as it balances inflation risks from elevated energy prices against potential labor market deterioration.
