FX.co ★ European Stocks Edge Higher on Cautious Optimism

European equities inched higher on Friday, with both the STOXX 50 and STOXX 600 rising 0.1%, supported by cautious optimism that the regional conflict may be nearing a resolution. Diplomatic hopes were lifted by plans for US and Iranian delegations to meet in Pakistan on Saturday, fueling expectations of a potential breakthrough. US President Donald Trump said he was “optimistic” about reaching a deal with Iran, while maintaining pressure on Tehran to reopen the Strait of Hormuz. In parallel, Israeli Prime Minister Benjamin Netanyahu agreed to enter talks with Lebanon.

Despite these developments, the Strait of Hormuz remained largely closed, keeping oil prices elevated near $100 per barrel. Sector-wise, technology and consumer cyclical stocks led gains, while utilities and healthcare underperformed. Among major movers, ASML Holding (+0.8%), LVMH (+0.5%), SAP (+0.3%) and Hermès (+0.9%) advanced, whereas Shell (-0.5%) and TotalEnergies (-0.9%) declined. For the week to date, the STOXX 50 is up 3.5% and the STOXX 600 has gained 2.7%.