European stocks head for mixed open as Unilever confirms $15.7 billion food merger talks with McCormick

LONDON — European stocks are expected to open in mixed territory on Tuesday as uncertainty lingers over the likelihood of a peace deal to bring an end to the Iran war.

The U.K.'s FTSE 100 index is seen opening flat to lower. Germany's DAX is set to open 0.5% higher, with France's CAC 40 0.4% and Italy's FTSE MIB a touch below the flatline, according to data from IG.

Stocks in the Asia-Pacific region whipsawed in volatile trading overnight after a report said U.S. President Donald Trump was looking to avoid a prolonged conflict in the Middle East.

The Wall Street Journal reported on Monday evening that Trump told aides he was willing to end U.S. military hostilities against Iran even if the Strait of Hormuz remained largely closed.

Trump and his aides are understood to believe an operation directed at reopening the critical chokepoint could prolong the conflict beyond the initial timeline for the war of up to six weeks, the WSJ said.

Meanwhile, U.S. Secretary of State Marco Rubio told Al Jazeera in an interview published Monday that Washington's objectives in Iran would take "weeks, not months" to achieve.

"Those objectives are the destruction of their air force, which has been achieved; the destruction of their navy, which has largely been achieved; a significant reduction in the number of missile launchers that they have, which we're well on our way to achieving; and we are going to destroy the factories that make those missiles and those drones that they are using to attack their neighbors and the United States and our presence in the region," he said. "We will achieve those objectives. We are well on our way or ahead of schedule. We will achieve them in weeks, not months."

U.S. stock futures edged up on Monday night and oil prices reversed course to drop in overnight trading following the WSJ report. It came after Trump on Wednesday had threatened to expand attacks to Iran's civilian energy infrastructure, including water desalination plants, if Tehran failed to reopen the Strait of Hormuz.

In corporate news, consumer goods giant Unilever announced on Tuesday that it was in advanced talks with McCormick to merge its foods business with the U.S. spice maker. A deal could be concluded today, the firm said.

"If a transaction were to proceed, it is currently contemplated that it would involve ... an upfront cash component of approximately $15.7 billion and the majority of the consideration in McCormick equity," Unilever said. "Upon completion of the transaction, it is expected that Unilever and its shareholders would hold 65% of the combined company."

— CNBC's Anniek Bao contributed to this market report.