European Shares Poised for Firm Open as Hormuz Deal Hopes Ease Oil Supply Fears

European equities were set to open firmly higher on Friday, May 29, 2026, as diplomatic progress toward a Strait of Hormuz security deal lifted investor sentiment. The potential accord reduces the immediate threat of crude supply disruptions, offering relief to markets strained by persistent inflation pressures. Euro Stoxx 50 and FTSE 100 futures rose between 0.5% and 0.8%, following a late-session rally on Wall Street. Brent crude futures dropped 2% to $78 a barrel, retreating as the risk of tanker seizures or military escalation in the waterway—which carries about 20% of global oil trade—receded. The pullback in energy prices eased concerns over higher input costs and renewed central bank hawkishness. The optimism partly offsets recent drags from sticky core inflation data and hawkish European Central Bank minutes. While analysts cautioned the deal remains tentative, short-term risk appetite is improving, with cyclical sectors such as autos and energy expected to lead the early gains.