Europe’s Stoxx 600 has risen about 1.5% this month, overtaking US peers as investors price in a stronger second half for the region.
The shift followed an interim US-Iran deal to reopen the Strait of Hormuz, a critical energy shipping route whose disruption had fueled inflation and growth fears.
The rebound marks a reversal from the past three months, when European stocks lagged after the war began and energy-market stress darkened the outlook.
The S&P 500 has fallen 1% over the same period, underscoring how easing Middle East tensions are improving Europe’s relative appeal.