European stocks advanced, nearing record levels, as a decline in oil prices bolstered investor sentiment. The benchmark Stoxx Europe 600 index traded higher, building on a rally that has seen it gain around 6% this year. Consumer products and retail shares were among the leading sectors.

This move followed a report that US President Donald Trump is seeking to de-escalate tensions with Iran, a development that has eased concerns about potential supply disruptions in the Middle East. Brent crude futures fell by more than 1% on Tuesday, hovering around $63 a barrel.

The broader market sentiment also improved as investors digested a slew of economic data. Manufacturing surveys from the Eurozone and Germany showed some resilience, suggesting that the economic slowdown may be stabilizing. Attention now turns to the upcoming European Central Bank meeting, where policymakers are expected to maintain their accommodative stance.

Asian markets also saw gains, with Japan's Nikkei 225 index rising 1.2%. Investors are looking ahead to key economic data releases from the US, including inflation figures and retail sales, which could provide further clues about the health of the world's largest economy.