(Il Sole 24 Ore Radiocor) - Milano, 25 mar - European shares closed higher, as investors welcomed signs that the conflict in the Middle East could be entering a diplomatic phase.

Market sentiment has shifted following remarks from US president Donald Trump, who stated that Washington is actively negotiating with Tehran. Trump suggested that Iran is willing to reach a peace agreement and noted that he has stepped back from his recent threats to order strikes on Iranian energy infrastructure, citing the ongoing discussions as the reason for the pause.

Although Iranian authorities have officially denied engaging in direct talks, the market tone remains supported by hopes that the conflict could ease soon.

On the data front, Germany's Ifo business climate index fell to 86.4 in March from a revised 88.4 in February. While the assessment of current conditions remained steady at 86.7 in March, business expectations worsened significantly, falling to 86.0 from 90.2 in the previous month.

The London FTSE 100 closed up 1.42% at 10,106.84 points, the Frankfurt DAX rose 1.46% at 22,969.89 points, the Paris CAC 40 gained 1.33% at 7,846.55 points, while in Milan the FTSE MIB added 1.48% at 44,013.29 points, and in Madrid the IBEX.

35 closed 1.63% higher at 17,186.45 points.

(RADIOCOR) 25-03-26 18:13:06 (0701) 5 NNNN