Dulux maker's stock soars 21% after takeover bid from major rival; oil holds below $100

LONDON — European stocks were in positive territory on Wednesday as regional investors assess the latest military operations against Iran and declining oil prices.

The pan-European Stoxx 600 was up 0.3% at 1:05 p.m. in London (8:05 a.m. E.T.).

Major bourses in London, Paris, Frankfurt and Milan all traded higher, while most regional sectors were in the green.

The Iran war remains a focal point for European markets, with regional stocks edging lower on Tuesday after U.S. forces carried out what Central Command described as "self-defense" strikes in southern Iran, targeting missile launch sites and Iranian vessels allegedly attempting to deploy mines.

In response, Iran's foreign ministry accused the U.S. of a "gross violation" of the fragile ceasefire between the two nations.

U.S. Secretary of State Marco Rubio said that the Strait of Hormuz will have to be opened "one way or the other."

The apparent flare-up in hostilities came despite President Donald Trump indicating in a Truth Social post earlier this week that a peace agreement could be in sight, with negotiations "proceeding nicely."

AkzoNobel shares soared almost 21% after the Dutch paint and specialist coating manufacturer, whose brands include Dulux, rejected a joint cash takeover offer from Nippon Paint and Sherwin-Williams worth 73 euros ($85) per share.

In a statement, Akznobel said its boards "unanimously" continue to recommend a planned merger with Axalta instead.

AkzoNobel said the offer "did not come close" to adequately reflecting its value and long-term prospects, adding that the plan offered "insufficient deal certainty" over the separation of the business, with its shareholders "not adequately safeguarded."

Elsewhere, Europe's autos sector were 2.6% in afternoon trade, boosted by a 5.1% year-on-year rise in new car registrations in the European Union, according to ACEA data. Renault jumped almost 4%, with Stellantis rising 2.8%, as Volkswagen advanced 2.3%. Mercedes-Benz gained 2.8% and BMW added 2.1%.

Oil prices pulled back on Wednesday, with global benchmark Brent crude futures last seen trading 2.5% lower at $97.12 a barrel. U.S. West Texas Intermediate oil futures were down 3.5% at $90.65 per barrel.

Asia-Pacific markets rose on Wednesday, with Japan and South Korea's benchmark indices hitting record highs. U.S. stock futures were little changed early Wednesday after a tech-driven rally also lifted the S&P 500 and Nasdaq Composite to new record highs.

There are no major earnings or data releases in Europe on Wednesday.

— CNBC's Lee Ying Shan contributed to this market report.