Under these conditions, the CAC 40 is trading down 0.65% at 7,718 points, while Frankfurt's DAX 40 has lost 1.11% and London's FTSE 100 is down 0.39%.

Yesterday, markets experienced high volatility, recovering a large portion of their losses following a statement released by the Iranian news agency Tasnim, in which the government responded to the U.S. 15-point plan. Although the demands appeared impossible to meet - notably regarding war reparations and compensation - the publication suggested that even indirect dialogue had not been ruled out. Subsequently, Donald Trump dampened investors' slim hopes by indicating that the Islamic Republic was desperate for a peace deal, adding that Washington was not certain it wanted one.

Since then, the U.S. President has extended the suspension of the period for destroying Iranian energy facilities until Monday, April 6, at 8:00 p.m. (New York time). He specified that "discussions are ongoing and, despite erroneous statements to the contrary from the 'fake news' media and others, they are going very well."

Nevertheless, crude oil prices continue to trade at elevated levels. WTI in New York is at 96.20 dollars, while North Sea Brent stands at 104.14 dollars.

On the currency market, the euro is down slightly against the greenback (-0.10%), trading at 1.1523 dollars.

On the macroeconomic front, the session is relatively light. Market participants will look to U.S. wholesale and retail inventories for February at 1:30 p.m., followed later in the afternoon by the University of Michigan consumer sentiment index for March.

Regarding individual stocks, Pernod Ricard is the top performer on the CAC 40 with a gain of 3.07%. The group confirmed discussions with Brown-Forman regarding a potential merger. Both groups would benefit from operational synergies, leveraging the American company's iconic brands such as Jack Daniels.

Meanwhile, Arkema is up 2.96% following a price target hike by Morgan Stanley, which now targets 83 euros, up from 78 euros previously.

Conversely, Air France-KLM is in the red (-3.57%), still suffering from the Middle East conflict which is driving up crude oil and, consequently, jet fuel prices. UBS remains Neutral on the airline group's stock and has lowered its price target from 13.95 to 10 euros.

Elsewhere in Europe, AstraZeneca stands out with a 3.33% gain, supported by a positive note from Jefferies as well as encouraging initial results for Tozorakimab in patients with chronic obstructive pulmonary disease.