European Stocks Hit 2-Month Highs as Brent Drops 4.7% on US-Iran Talks

9 articles · Updated · XTB · May 25

DAX climbed 1.82% and the EURO STOXX 50 gained 1.85% on Monday, extending earlier gains as investors embraced signs of progress toward reopening the Strait of Hormuz.
Brent fell about 4.7% to roughly $98 a barrel and WTI dropped more than 5%, easing inflation and growth fears and lifting cyclicals such as industrials, banks and consumer discretionary shares.
Safran rose 4.46%, Airbus 2.79% and Air France-KLM as much as 7.5%, while banks including Deutsche Bank and BNP Paribas advanced; energy lagged, with Eni down 1.78% and TotalEnergies off 1.24%.
Delivery Hero jumped more than 12% to an 18-month high after the FT reported Uber may raise its bid above €38, though analysts flagged antitrust overlap in 22 markets.
Trump said Saturday that a framework for a Hormuz agreement had been largely negotiated, but analysts cautioned Iran's nuclear program and control of the strait remain unresolved, leaving the outcome uncertain.

With mixed signals from Tehran, is the global market's optimism for a U.S.-Iran deal dangerously premature?

Can a peace deal that shelves Iran's nuclear ambitions truly guarantee stable oil prices for the world?