European Equities Edge Higher Amid Potential Iran Peace Breakthrough and Central Bank Pivot

European indices are poised for a positive open on Tuesday, driven by optimism surrounding diplomatic efforts to end the two-month conflict between the U.S. and Iran. The rally comes as White House Press Secretary Karoline Leavitt confirmed that President Donald Trump and his national security team are reviewing an Iranian proposal to reopen the Strait of Hormuz in exchange for the lifting of the U.S. blockade. This potential de-escalation would postpone negotiations on Tehran's nuclear ambitions to a later date. However, the administration has maintained that any deal must be '100% complete' before the blockade is lifted, leaving some uncertainty regarding the immediate outcome. Oil prices have remained sensitive, edging higher overnight as the market awaits a definitive resolution. Early indicators show modest gains across the region, with Germany's DAX expected to rise 0.23%, France's CAC 40 up 0.34%, and Italy's FTSE MIB increasing by 0.3%. The U.K.'s FTSE 100 is also seen opening slightly higher. Beyond geopolitics, the financial community is bracing for a high-stakes week of central bank activity. The Federal Reserve, European Central Bank, and Bank of England are all scheduled for meetings. The Fed's Wednesday decision is particularly significant, as it may be Jerome Powell's final meeting before Kevin Warsh takes over in May, following the Department of Justice's decision to drop a criminal probe into Powell. While the ECB and BoE are expected to maintain current interest rates on Thursday, analysts anticipate that both institutions will leave the door open for potential hikes later this year to combat war-induced inflation and growth volatility. Additionally, investors are monitoring earnings reports from major regional players, including BP, Airbus, Novartis, and Barclays.