STOXX 600 Surges Amid Middle East Peace Hopes

Europe's STOXX 600 hit a record high as the U.S. and Iran reached a peace agreement. This lifted global risk sentiment and reduced oil prices. The pan-European index rose, led by auto and travel sectors. However, energy stocks fell due to lower crude prices.

On Monday, Europe's STOXX 600 achieved a record high following a preliminary peace agreement between the United States and Iran. This development is set to open the critical Strait of Hormuz, promising relief from the three-month-long Middle East conflict.

The peace framework announcement boosted global risk sentiment and led to a 4% drop in Brent crude prices, triggering a 1.2% rise in the STOXX 600 index, which hit 640.94 points by 0711 GMT, reclaiming all conflict-related losses.

Auto stocks surged 3.5%, while airlines like Lufthansa and Air France saw over 5% jumps. Despite a new ECB interest rate hike, European shares outperformed, reversing a trend of underperformance against U.S. and Asian markets.