Frankfurt’s DAX 40 climbed nearly 2% on Wednesday, reclaiming the 23,000 level, as optimism grew over a potential swift resolution to the Middle East conflict. The US proposed a 15-point peace plan to Tehran after a possible one-month ceasefire, with President Trump claiming Iran is "desperate to reach a deal." However, Iran’s military leadership dismissed the reports, denouncing the US government. Despite the tensions, Brent crude fell below $100 a barrel, alleviating inflation fears and prompting investors to scale back rate hike expectations. Markets now anticipate only two European Central Bank rate increases by year-end, down from previous projections of three.