FX.co ★ European Stocks Hit Record Highs on US-Iran Deal

European stocks jumped more than 1% to fresh record highs on Monday, with the STOXX 50 reaching 6,260 points and the STOXX 600 advancing to 640 points. The rally followed news of a preliminary agreement between the US and Iran to end their three-month conflict, which includes lifting the US blockade and reopening the Strait of Hormuz. A memorandum of understanding is expected to be signed in Switzerland this Friday, though uncertainty remains as markets await further details and the question of Iran’s nuclear program is still unresolved. The deal sparked a sharp decline in oil prices, easing pressure on central banks to raise interest rates to fight inflation. Money markets have scaled back their expectations for tightening and now anticipate just one rate hike each from the ECB and the BoE by the end of the year.