European Shares Rise on Ceasefire Hopes; Oil Falls, Defense Up

European shares rose on Friday as investors reacted to growing expectations that a proposed agreement to extend a Middle East ceasefire and reopen shipping through the Strait of Hormuz could be finalized soon. The pan-European STOXX 600 index gained 0.3% to 626.91 points by 0715 GMT and was on track for a second consecutive monthly rise and a weekly gain. The proposed agreement does not address Iran’s nuclear program.

Restored traffic through the Strait of Hormuz, a key route for global energy shipments, was seen as supportive for energy supply flows. Brent and U.S. crude prices fell and were headed for their first weekly decline in two months, easing some pressure on European markets that rely on imported energy.

A preliminary French estimate showed inflation accelerated in May from the previous month. Traders awaited inflation data for Germany and Italy later in the day to get a clearer picture of price trends across the region.

The defense sector index rose 1.4%. Tensions in Eastern Europe remained high. Romanian authorities reported that a drone injured two people in a southeastern city during an overnight Russian attack on Kyiv.

Among individual stocks, Germany’s CTS Eventim jumped 11% after reporting first-quarter 2026 revenue rose 23% on strong demand for live entertainment events. The stock ranked among the largest gainers on European exchanges during the session.

Investors continued to monitor energy prices, upcoming inflation readings and geopolitical developments.