investingLive European markets wrap: Oil holds firmer, stocks steady on cautious optimism

Headlines: The echo chamber harps on Iran proposing to reopen Strait of Hormuz before nuclear deal Iran foreign minister says to continue talks with Oman on Strait of Hormuz Oil prices continue to rise amid the US-Iran stalemate; Iran awaits US blockade removal Dollar lags even as risk mood keeps more cautious on the day Gold continues to consolidate amid the US-Iran stalemate and the more hawkish Fed BoJ preview: no change expected amid the US-Iran uncertainty Short-term inflation expectations rise, lending tightens in the latest ECB's SAFE survey Germany May GfK consumer sentiment -33.3 vs -29.3 expected ' Markets: Brent crude (June) up 1.1% to $106.48, WTI crude up 0.8% to $95.15 European indices up 0.5% to 1.0%, S&P 500 futures flat AUD and NZD lead, USD lags on the day US 10-year yields up 0.8 bps to 4.317% Gold down 0.1% to $4,702 Bitcoin down 1.1% to $77,778 The session was gripped by continued tensions surrounding the US-Iran conflict. Hopes for negotiations over the weekend were dashed as both sides remained defiant, leaving the Strait of Hormuz to remain closed for a ninth straight week now. Shipping data shows that only seven vessels transited through the waterway in the past 24 hours, mainly dry bulk and cargo vessels. Meanwhile, six Iranian tankers carrying over 10 million barrels of oil were turned back by US forces and returned to the strait in recent days. As we got the new week going though, there is now some hopeful optimism as reports are suggesting that Iran is proposing a separate deal to "reopen" the Strait of Hormuz. That will be separate from any nuclear agreement but conditional on the US lifting its naval blockade. Once those conditions are met, Iran is said to be willing to sit down for nuclear talks after. For now, that is helping to provide some hope for a more positive resolution in the days/weeks ahead. Oil prices are staying underpinned though with Brent crude seen up 1.1% to $106.48. That is the June contract, which will run its course in a few days. The "front-month" is arguably the July contract now, which sees price up by 1.0% to $100.16 currently. Meanwhile, WTI crude is up 0.8% to $95.15 at the moment. Besides that, European stocks are starting the week with a positive footing. Major indices in the region are up 0.5% to 1.0% while US futures are holding steadier and keeping flattish on the day. In FX, the dollar is slightly lower across the board with the greenback losing ground after having opened with a gap higher today. EUR/USD rebounded from a low of 1.1690 to 1.1740 levels while AUD/USD is up 0.5% to 0.7180 levels now - up from a low of 0.7127. Elsewhere, precious metals are just lightly changed with some reservations still up in the air. Gold is down 0.1% to $4,702 with silver also down 0.1% to $75.63 currently. This article was written by Justin Low at investinglive.com.