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European Stocks Reach Record Highs on Hopes Strait of Hormuz Will Reopen

Markets are rallying because diplomatic moves could cut the oil risk premium and ease inflation pressures.

Overview

  • Major European indices set fresh session and closing records as investor risk appetite rose on diplomatic signals about the Strait of Hormuz.
  • Iran said it had agreed with Oman on a new transit route for ships but a formal U.S.–Iran agreement remains pending and markets want concrete confirmation.
  • Brent traded in the low $80s as oil fell from earlier peaks, a move that helped lower near-term inflation worries and boosted cyclical and luxury stocks.
  • A sharp slowdown in U.S. payrolls weighed on the case for further Federal Reserve tightening and reinforced market optimism about holding rates steady.
  • Tech and memory‑chip firms underperformed after weak guidance, and analysts warn the rally could reverse quickly if diplomatic or U.S. macro news disappoints.