European shares climbed Friday and oil prices slipped as investor sentiment was lifted by a tentative agreement between the US and Iran to extend their ceasefire by 60 days and hold new talks on Iran's nuclear program.
According to a US official, the deal is still awaiting sign-off from President Donald Trump. Iran has not publicly confirmed the agreement.
Oil prices hit a one-month low on optimism over de-escalation, though they remain above pre-war levels. The Strait of Hormuz is still largely closed. Brent crude traded below $93 a barrel, down more than 1%. West Texas Intermediate fell nearly 1.7% to $87.40.
The tentative accord reportedly clarifies that Iran will not be allowed to impose tolls on ships transiting the strait, while the US will gradually lift its naval blockade on Iranian ports. Analysts caution that any supply recovery will take time.
European stocks opened higher, with the Euro Stoxx 50 up 0.5%. Gains were led by Siemens Energy, Infineon Technologies, and Rheinmetall. Markets are also watching eurozone inflation data ahead of the ECB’s June 11 meeting where a rate hike is expected.
Novo Nordisk shares rose 0.5% after France became the first European country to announce reimbursement for weight-loss drugs, including the company's flagship products.
Asian markets cheered the ceasefire prospects. Tokyo’s Nikkei 225 jumped 1.8%, South Korea’s Kospi gained 2.3%, and Hong Kong’s Hang Seng added 0.4%. Australia’s S&P/ASX 200 rose 1%.
On Wall Street Thursday, the S&P 500 set another record, rising 0.6% to 7,563. The Dow was flat, while the Nasdaq Composite gained 0.9%. Dollar Tree surged 17.9% on strong earnings, and Kohl’s jumped 20.6%.
Gold edged up 0.5% to $4,553 an ounce.