European Shares Advance on US-Iran Peace Deal Optimism

European equities climbed on Friday, May 29, 2026, as hopes for a US-Iran diplomatic breakthrough eased Middle East tensions and buoyed risk appetite. The pan-European STOXX 600 index rose 0.8%, with major benchmarks in Frankfurt, Paris, and Milan advancing between 0.6% and 1.2%. Sentiment improved after US and Iranian officials signaled progress in indirect negotiations aimed at reviving a nuclear accord and lifting sanctions. Brent crude futures slid 2.3% to $68.40 per barrel on the prospect of increased Iranian oil exports, weighing on energy stocks but lifting airlines and industrials. The potential detente removes a key geopolitical risk premium from markets, which have also been supported by steady eurozone economic data. Investors now await further details from the Vienna talks, with a provisional framework expected by mid-June.