In a post on the Truth Social platform, Trump asserted that the United States is prepared to launch a 'full-scale, all-out attack on Iran at any time, should no acceptable agreement be reached' with Tehran. However, he told reporters that there was a 'very good chance' of reaching an understanding. The President even relayed comments from Middle Eastern allies suggesting 'a deal is very close that would prevent Iran from obtaining nuclear weapons.'

Washington and Tehran remain deadlocked, particularly on the nuclear issue. Iran continues to demand the unfreezing of its overseas assets.

Determined to maintain its grip on the Strait of Hormuz, the Islamic Republic yesterday announced the creation of the Persian Gulf Strait Authority (PGSA). This new body is tasked with managing the maritime corridor through which oil flows between various nations. According to the shipping industry publication Lloyd's List, it will be 'responsible for approving vessel transits and collecting transit fees in the strait.'

Against this backdrop, oil prices maintained their ascent at elevated levels. Brent crude gained 0.63% to 110.31 dollars, while WTI advanced 0.87% to 103.16 USD.

Commenting on the situation, Sebastian Paris Horvitz, Head of Research at LBPAM, noted that 'the persistence of the oil shock, linked to the impasse over the opening of the Strait of Hormuz, maintains upward pressure on energy prices, which is beginning to spread more broadly to overall prices. Nevertheless, at this stage, this pressure remains relatively contained.'

Furthermore, according to the analyst, 'this fear of a lasting inflationary shock is now clearly visible in market expectations. Indeed, since the ceasefire agreement concluded in early April, the trend in expectations has remained oriented upward on both sides of the Atlantic. In the United States, they have risen by more than 10 basis points, while the increase has been slightly more modest in the eurozone.'

Vallourec tumbles within the SBF 120 index

In corporate news, Vallourec (-7.79%) posted one of the sharpest declines on the SBF 120 this Tuesday. Shares of the seamless steel tube manufacturer retreated following ArcelorMittal's sale of 23.9 million Vallourec shares. These shares represent approximately 10% of the French company's outstanding share capital, sold at an offering price of 24 EUR per share, generating gross proceeds of approximately 667 MUSD. Conversely, ArcelorMittal shares gained 1.25%, marking one of the strongest performances on the CAC 40.

In contrast, Currys (+12.46%) led the FTSE UK 250 in Europe. The stock surged after indicating this Tuesday that it expects an 18% increase in annual profit to 191 million GBP. The London-based electronics and telecommunications retailer recorded 4% like-for-like sales growth over the 16 weeks ended May 2.

This morning, Rheinmetall shares rose by more than 4% in Frankfurt, driven by a Reuters report stating that the German army plans to order 2,030 trucks for an amount slightly exceeding one billion euros. Delivery is expected to be completed by November 2026, according to a draft ministry document intended for the German parliament's budget committee.

Adecco (-1%) suffered the steepest decline on the Swiss SMIM mid-cap index this Tuesday, following a downgrade by UBS on the recruitment agency network. The bank justified its decision by the prospect of a slower-than-expected recovery in the group's results. UBS lowered its recommendation on the stock from 'neutral' to 'sell' and slashed its price target to 13 francs, down from 21 francs previously.

On the macroeconomic front, the eurozone's trade surplus for March exceeded expectations. It reached 7.8 billion EUR, compared to estimates of 5.4 billion EUR and a previous figure of 11.1 billion EUR (revised from 11.5 billion), according to data released Tuesday by Eurostat, the European Union's statistical office.

Additionally, in the United Kingdom, the unemployment rate rose from 4.9% to 5% in March, according to the Office for National Statistics, whereas it had been expected to remain stable at 4.9%. The number of jobless claimants in the country increased by 26,500, compared to expectations of 23,100 and only 4,900 (a figure revised downward from 26,800) in February.