UPDATE 1-Oil boost and Italy budget hopes support European shares; Next shines
Optimism over the Italian budget also buoyed sentiment.
Oil majors BP and Shell rose more than 1 percent after Brent hit a fresh four-year high amid looming U.S. sanctions against Iran and an apparent reluctance by OPEC and Russia to raise output to offset the expected to hit to supply.
"Russia and Saudi Arabia essentially ignoring Trump's pleas, combined with U.S. sanctions hitting Iran's oil exports in early November mean we expect fresh multi-year highs for oil, which will also help the oil majors such as BP and Shell to gain ground in the near term," LCG analyst Jasper Lawler said.
The oil and gas index led sectoral gainers, up 1 percent at its highest level since mid-July.
Commodities trader and miner Glencore added 2.2 percent after launching a $1 billion share buyback.
Top gainer on the STOXX was Next, up 8.3 percent.
Signs that Italy's coalition was likely to reach a compromise over the 2019 budget lifted Italian stocks and bonds with the country's top FTSE MIB equity index up around 1 percent, outperforming the broader market.
Italian banks, which are sensitive to political risk due to their big sovereign bond holdings, rose 1.5 percent. Their gains helped and growing expectations of a rate hike in the eurozone next year helped lifted the European banks up 0.7 percent.