The Athens stock exchange opened on a positive note on Wednesday, buoyed by improving sentiment in global markets.

Investors are focusing on the FTSE/Athex Composite index, which is targeting the 2,650-point level as risk appetite returns to European equities.

The rally is being driven by reports of potential diplomatic progress regarding the Strait of Hormuz.

Successive signals suggesting a possible agreement to reopen the critical shipping route have helped ease geopolitical tensions that have weighed on energy markets.

This de-escalation narrative is providing a tailwind for equities, particularly in regions sensitive to energy price volatility.

Brent crude prices have retreated in response to the calming geopolitical outlook.