European equities advanced on Monday, with the STOXX 50 up 1.2% and the STOXX 600 rising 0.8%. Risk sentiment improved after the US and Iran halted reciprocal strikes, and Iranian and Omani officials met to discuss measures to safeguard shipping through the Strait of Hormuz. These developments helped ease fears of further supply disruptions and triggered a sharp pullback in oil prices.
The energy sector was the session’s main laggard, as weaker crude prices pressured oil and gas stocks, while all other major sectors finished in positive territory. Investors also weighed a new wave of corporate earnings. AstraZeneca gained 1.7% after posting stronger-than-expected profits and reaffirming its earnings guidance for 2026. LVMH climbed 1.3% ahead of the release of its first-half results later in the day.
