FX.co ★ European Stocks Close Higher

European equity indices closed sharply higher on Monday, mirroring gains in risk assets worldwide after the US paused strikes on Iranian energy infrastructure for five days — the first clear sign of de-escalation in the ongoing Middle East conflict. The Eurozone’s STOXX 50 climbed 1.2% to 5,566, while the pan-European STOXX 600 advanced 0.6% to 577.

US President Trump said the delay in military action followed constructive talks with Iranian officials, a claim Tehran subsequently denied. Even so, the pause was interpreted as a signal of Washington’s intention to curb energy prices, bolstering risk-sensitive sectors that have come under pressure from stagflation fears since the start of the month.

Among major movers, Santander, UniCredit, and Intesa Sanpaolo each gained more than 3%. ASML rose over 4% amid a global upswing in AI-related stocks, while falling LNG prices helped propel Siemens Energy nearly 5% higher.