European Shares Face Gap-Down Opening Amid Fading Iran War De-escalation Hopes

European shares are poised for a gap-down opening on Thursday as hopes for de-escalation in the Iran conflict have diminished following U.S. President Donald Trump's prime-time address. Trump did not provide a clear timeline for ending the Middle East conflict, stating instead that U.S. military goals were 'nearing completion' and warning that Iran would face 'extreme' consequences over the next two to three weeks. This has led to increased market uncertainty, particularly in energy and defense sectors. The market reaction has been swift, with oil prices surging more than 6 percent amid ongoing disruptions at the Strait of Hormuz. Gold prices, however, fell nearly 2 percent to $4,669 per ounce, while Asian markets reversed earlier gains to edge lower. The dollar strengthened, and bond yields rose, reflecting heightened risk aversion. Analysts are concerned about potential jet fuel supply disruptions during the summer if the conflict persists into April and beyond. Iran has launched three missile barrages toward northern Israel since Trump's address, escalating regional tensions. Additionally, an Iranian strike reportedly damaged Amazon's cloud operations in Bahrain, according to the Financial Times. Despite these developments, U.S. stocks closed higher overnight, buoyed by optimism that the conflict might soon conclude. Trump claimed Iran's 'New Regime President' had requested a ceasefire, though Tehran denied the assertion. The Stoxx Europe 600 index rose 2.5 percent on Wednesday in response to Trump's earlier remarks suggesting the war could end in 2-3 weeks. However, the market's buoyancy may not carry over as the geopolitical outlook remains uncertain. The German DAX, French CAC 40, and U.K. FTSE 100 all posted gains on Wednesday, but renewed hostilities could shift investor sentiment sharply.