Kuala lumpur: European stocks closed on a strong note on Wednesday, as the mood turned bullish amid hopes of a de-escalation in tensions in West Asia, dpa-AFX reported.

According to BERNAMA News Agency, the United States has sent Iran a 15-point plan to end the war in West Asia. The report acknowledged it is unclear whether Iran is likely to accept the plan as a basis for negotiations, but argued the delivery of the plan shows the administration is ramping up efforts to conclude the war.

Despite rejecting the US peace plan as "excessive" and issuing five conditions to end the war, Iran informed the United Nations Security Council and the International Maritime Organisation that "non-hostile vessels" may transit the Strait of Hormuz with Tehran's consent.

A sharp drop in crude oil prices helped ease inflation concerns and contributed significantly to the positive mood in the markets.

The pan-European Stoxx 600 climbed 1.42 per cent. Germany's DAX, France's CAC 40, and the U.K.'s FTSE 100 climbed 1.41 per cent, 1.33 per cent, and 1.42 per cent, respectively. Switzerland's SMI gained 1.62 per cent.

Among other markets in Europe, Austria, Belgium, the Czech Republic, Finland, Iceland, Ireland, the Netherlands, Norway, Poland, Portugal, Spain, and Sweden closed with strong gains. Denmark, Russia, and Turkey ended with modest gains, while Greece closed sharply lower.

In the UK market, stocks from mining and financials sectors turned in a fine performance. Airliners moved up as well. Endeavour Mining and Anglo American Plc climbed about 4.5 per cent and 3.9 per cent, respectively. Fresnillo moved up 3.7 per cent, while Glencore and Rio Tinto gained 2.2 per cent and 1.3 per cent, respectively. Standard Chartered gained 2.7 per cent, Barclays climbed 2.7 per cent, HSBC Holdings moved up 2.5 per cent, and Lloyds Banking Group advanced by nearly 2.0 per cent. Natwest Group ended 1.75 per cent up. Pershing Square Holdings, GSK, ICG, Barratt Redrow, Smiths Group, Croda International, and Scottish Mortgage gained 3.0 to 4.0 per cent. United Utilities climbed 3.2 per cent. Standard Life, Intertek Group, Prudential, Lion Finance, JD Sports Fashion, IMI, Rolls-Royce Holdings, National Grid, Melrose Industries, Severn Trent, Halma, and Autotrader Group also posted impressive gains. Entain, Relx, Experian, Bunzl, and Shell closed with sharp to moderate losses.

In the German market, Siemens Energy, Infineon, Vonovia, Commerzbank, RWE, Deutsche Bank, Rheinmetall, MTU Aero Engines, Continental, BASF, Scout24, Merck, Symrise, Gea Group, Beiersdorf, and Heidelberg Materials moved up sharply. Lufthansa gained about 2.3 per cent as oil prices fell amid easing hopes of a de-escalation in tensions in West Asia. Deutsche Boerse, SAP, and Deutsche Telekom closed weak.

In the French market, STMicroelectronics climbed nearly 4.5 per cent. Thales, Sanofi, Societe Generale, Airbus, Legrand, and Schneider Electric gained 2.0 to 3.0 per cent. ArcelorMittal, Veolia Environment, Eurofins Scientific, Bureau Veritas, Safran, Stellantis, Saint-Gobain, Renault, Pernod Ricard, Engie, BNP Paribas, Credit Agricole, Kering, Bouygues, Dassault Systemes, Michelin, and Capgemini gained 1.0 to 2.0 per cent. Air France-KLM climbed 2.3 per cent as oil prices fell nearly 4.0 per cent in anticipation of a de-escalation of the West Asia war. Tubular solutions firm Vallourec surged more than 4.0 per cent after it secured five contracts for oil country tubular goods (OCTG) products to be delivered in Indonesia. Orange pared early losses and settled just marginally down. Unibail Rodamco, Publicis Groupe, Danone, and TotalEnergies closed weak.

In economic news, a report from the Ifo Institute said Germany's Ifo Business Climate Index dropped to 86.4 in March 2026, the weakest reading since February 2025, as the escalating West Asia conflict dampens economic sentiment. The index was expected to come in at 86.1, after a revised 88.4 reading in February.

The Ifo Current Conditions index in Germany remained unchanged at 86.70 points in March, the same as in February and compared to forecasts of 86.

Data from the Office for National Statistics showed UK consumer prices registered stable growth and input prices rebounded in February. Consumer price inflation remained unchanged at 3.0 per cent in February, as expected.

On a monthly basis, consumer prices moved up 0.4 per cent, partially offsetting January's 0.5 per cent decrease. Monthly inflation matched expectations.

Core inflation, which excludes prices of energy, food, alcohol, and tobacco, rose to 3.2 per cent from 3.1 per cent in the prior month.

Another report from the ONS showed that input prices climbed 0.5 per cent year-on-year in February, contrasting with the 0.4 per cent drop in January.

On a monthly comparison, input prices rose at a faster pace of 0.8 per cent, following a 0.3 per cent increase in January.

Meanwhile, output price inflation eased to 1.7 per cent from 2.5 per cent in January. Month-on-month, output prices slid 0.5 per cent, remaining flat in January.