European stock markets opened higher on Monday, reaching their highest levels in over two months, buoyed by positive signals that Iran and the United States are negotiating to end their conflict. Concerns over inflationary pressures and a global economic slowdown have eased. At the time of writing, the pan-European STOXX 600 index rose 0.61% to 629.60 points, nearing the all-time high set in late February, just before the outbreak of conflict in the Middle East. Most sectors recorded gains, with banking stocks leading the advance, up approximately 1.7%. Regional airlines performed strongly as Brent crude oil prices fell 5% to $96 per barrel, with Lufthansa and Air France-KLM both posting significant gains. Although U.S. President Donald Trump warned that he is in no rush to finalize a deal with Iran, investors appeared more inclined to believe his statement from last Saturday—that the U.S. and Iran have "largely agreed" on a memorandum of understanding for a peace agreement, which is expected to reopen the Strait of Hormuz. However, specific arrangements on core disagreements, such as Iran's nuclear program, remain lacking in clear details. Approximately one-fifth of the world's crude oil and natural gas passes through this strategic waterway, making it crucial for Europe, which is highly dependent on energy imports. Previously, concerns that rising oil prices could exacerbate inflationary pressures in the region had caused the STOXX 600 to underperform other major global markets. In individual stock movements, Delivery Hero's share price surged 12%. Reports indicated that Uber's board met on Saturday to discuss increasing its acquisition offer for the German food delivery group. Previously, a major shareholder of Delivery Hero had rejected a takeover proposal valuing the group at over €11.5 billion (approximately $13.39 billion). Trading is expected to be relatively subdued today due to public holidays in the U.S. and U.K. markets.
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