European Stocks Surge on US-Iran Ceasefire

European stock markets surged at the open on Wednesday, marking their strongest gains in a year, as investors welcomed a two-week ceasefire agreement between the United States and Iran that includes the reopening of the Strait of Hormuz. The deal, announced by President Donald Trump late Tuesday just before his self-imposed midnight deadline, averted potential escalation in the month-long US-Israeli military campaign against Iran and triggered a sharp decline in oil prices.

The Stoxx Europe 600 index climbed 3.5 percent in early trading, its largest intraday advance since April 2025, while Britain's FTSE 100 jumped 2.56 percent to 10,613. Germany's DAX rose 5 percent, and France's CAC 40 gained 3.5 percent. Ireland's market opened 2.3 percent higher, with banking shares leading the advances alongside homebuilders and low-cost airline Ryanair. Travel and mining companies posted some of the biggest increases, with EasyJet up more than 13 percent, IAG nearly 10 percent, and Rolls-Royce 9.5 percent. In contrast, energy stocks fell 4.2 percent as Brent crude futures dropped 15 percent to below $100 a barrel, and West Texas Intermediate settled 16 percent lower at $94.78.