European Shares Surge Amid Optimism Over U.S.-Iran Peace Progress

European shares hit a two-week high as oil prices dropped and optimism grew following comments from U.S. President Donald Trump on progress with Iran. The STOXX 600 rose by 1.5%, with major indices in London, Spain, Germany, and France also seeing gains, despite concerns about energy prices impacting growth.

European shares reached a two-week high on Wednesday, boosted by falling oil prices and renewed investor optimism. This surge followed U.S. President Donald Trump's announcement of significant strides toward a peace agreement with Iran. The STOXX 600 index climbed 1.5% to 618.89 as of 0826 GMT.

Regional markets mirrored the upward trend, with indices in London, Madrid, Frankfurt, and Paris gaining between 1.4% and 1.7%. Despite Europe's lag behind global markets, which have been buoyed by AI-driven optimism, concerns remain over higher oil prices' impacts on economic growth and inflation.

The healthcare index rose 1.8%, aided by a 7.5% surge from Novo Nordisk. The banks and industrial sectors also showed strong performances, while Italy's Leonardo and Norway's Kongsberg reported significant earnings growth. Meanwhile, BMW increased 5.6% despite a drop in quarterly pretax profits, with spirits maker Diageo and others contributing to the overall market upswing.