Across the Atlantic, major U.S. indices are trading in positive territory: the Dow Jones is up 0.66% and the Nasdaq has advanced 1.39%, heading straight for a tenth consecutive winning session, a streak unseen since 2021.

Discussions between the United States and Iran could resume as early as this week, reviving hopes for a de-escalation on the geopolitical front. Against this backdrop, oil prices have slipped back below the 100-dollar mark, with Brent crude shedding 1.89% to 96.04 USD at the European market close.

According to the International Energy Agency (IEA), the conflict in the Middle East has triggered "the most severe oil supply shock in history." The Agency also anticipates the sharpest contraction in demand since the Covid-19 pandemic during the second quarter. "Oil demand is expected to decline by 80,000 barrels per day (bpd) this year, as the war in Iran has upended our global outlook," it specified in its March monthly report.

In its latest forecasts, the International Monetary Fund has not ruled out the risk of a global recession in the event of a prolonged conflict, while emphasizing that this scenario does not, at this stage, constitute its baseline hypothesis.

"The fact that a ceasefire has been reached reduces the probability of our most pessimistic scenario, without however guaranteeing a swift return to normalcy in the Middle East and the Strait of Hormuz," Invesco noted.

Tuesday's session was also punctuated by quarterly earnings releases.

LVMH finished near flat (-0.06%) after briefly trailing as the session's laggard, following the luxury giant's report yesterday evening of quarterly sales that fell short of expectations.

The Paris benchmark was driven higher by Eurofins (+5.52%), following the announcement of an agreement to divest its electrical and electronics testing business to UL Solutions for an enterprise value of 575 million euros.

Meanwhile, Publicis (+1.81%) posted a solid performance after publishing results that were broadly in line with expectations.

On the foreign exchange market, the euro is up 0.22% at 1.1793 USD.