- media@moneyinfocus.news
European equities opened the week sharply higher, with investors welcoming signs of progress in negotiations between the United States and Iran that could lead to the reopening of the Strait of Hormuz and a reduction in geopolitical risks across global energy markets.
The pan-European STOXX 600 advanced 0.6% to near three-month highs, while the EURO STOXX 50 climbed 1.1%, supported by broad-based gains across banking, industrial, and airline sectors.
Investor sentiment improved after President Donald Trump said discussions with Iran were “proceeding in an orderly and constructive manner,” while emphasizing that Washington was “in no rush” to finalize an agreement.
At the same time, senior US officials indicated that negotiations between Washington and Tehran were moving closer to a framework that could restore access to the Strait of Hormuz, one of the world’s most strategically important energy shipping corridors.
The prospect of easing tensions in the Middle East triggered a sharp decline in oil prices, providing relief for European markets that have faced renewed inflationary pressures tied to higher energy costs.
Banking stocks led the advance, with BBVA rising 2.5%, Banco Santander gaining 2%, UniCredit climbing 2%, and BNP Paribas adding 1.7%.
Industrial companies also posted strong gains, including Safran, which surged 5.1%, and Siemens, up 1.9%.
Airline shares outperformed on expectations of lower fuel costs, with Lufthansa rallying 4.1% and Air France-KLM jumping 7.6%.
