A preliminary US-Iran peace accord sparks a 1% surge in Europe’s STOXX 600, easing geopolitical tensions and boosting cyclical equities.
Europe’s STOXX 600 index climbed 1% to an all-time high of 639.20 points on June 15, driven by a landmark US-Iran preliminary peace deal. The accord aims to end hostilities and restore maritime shipping through the Strait of Hormuz, a critical oil transit route.
The agreement, set for formal signing on Friday, includes dismantling Iran’s blockade in exchange for US energy embargo rollbacks. Prior to the deal, European equities had underperformed due to geopolitical risks and the continent’s reliance on Middle Eastern oil supplies.
The breakthrough triggered a sharp rotation from defensive tech stocks into European consumer, travel, and industrial sectors. Brent crude prices fell nearly 5% as global risk appetite surged.