European stocks rally on US-Iran peace deal hopes; oil prices slide

European stock markets celebrated a potential end to the conflict between the United States and Iran, with major indices posting gains of approximately 2% on Friday. The announcement of a preliminary peace agreement, later confirmed by Pakistani mediators, fueled widespread optimism across the continent.

Spain's IBEX 35 index experienced the most significant rise, climbing 2.59% to reach new closing highs. Other European exchanges also performed strongly, with Milan up 1.97%, Paris 1.83%, Frankfurt 1.76%, and London 1.63%. The benchmark Euro Stoxx 50 index advanced 2.16%, reflecting the positive sentiment.

Sectors particularly benefiting from the news included communication equipment, which saw a 7.94% increase, and commercial banks, up 4.05%. The positive market reaction extended to Asia, where indices had already anticipated the developments. Conversely, the prospect of peace led to a sharp decline in oil prices, with Brent crude dropping 3.63% to $87.1 per barrel and WTI falling 3.84% to $84.34.

In other markets, SpaceX shares surged 11.11% on their trading debut in New York, while the euro saw a slight increase of 0.03% against the dollar. US stock indices showed mixed results, with the Dow Jones and S&P 500 rising modestly, while the Nasdaq experienced a slight decline.