European stocks hit two month highs on Middle East peace
The STOXX 600 rose 0.67 percent on Monday as reports of a framework to reopen the Strait of Hormuz boosted banking and airline stocks. While energy shares fell alongside crude prices, investors welcomed the potential de-escalation of conflict between Tehran and Washington.
The STOXX 600 rose 0.67% to 629.28 points on Monday morning as potential diplomacy between Tehran and Washington eased energy supply fears. European shares reached their highest level in two months, nearly erasing losses sustained since the Middle East conflict began in February. A de-escalation would lower inflation risks for energy-dependent economies and reduce the likelihood of a global slowdown.
### Energy Relief Lifts Aviation and Banking Banking stocks led the market with a 1.9% jump, while airline shares surged as Brent Crude Oil fell 4.7% to $98 a barrel. DEUTSCHE LUFTHANSA-REG rose 3.7% and AIR FRANCE-KLM climbed 7.5% following the drop in fuel costs. Investors reacted to comments from United States President Donald Trump, who said a framework to reopen the Strait of Hormuz had been largely negotiated based on his remarks.
