European stocks rose on Friday, heading towards ending the month with gains, with investor sentiment improving amid hopes of reaching a final agreement to extend the ceasefire in the Middle East and resume shipping traffic through the Strait of Hormuz.
Sources reported that the proposed agreement is still awaiting the approval of US President Donald Trump, and that it does not address complex issues such as the Iranian nuclear program.
The European Stoxx 600 index rose by 0.3 percent to reach 626.91 points by 07:15 GMT, heading towards ending the week on the rise. The index had approached record levels earlier in the week, and is on track to record a second consecutive monthly gain, although tensions in the Middle East have limited further rise.
In energy markets, the prices of crude oil, one of the most important energy resources for Europe, fell, heading for the first weekly loss in two months. But the previous rise in energy prices has begun to have an impact on inflation, as preliminary data in France showed an acceleration in the pace of inflation in May compared to the previous month, while similar data is expected to be issued from Germany and Italy later today.
In this context, defense sector shares rose by 1.4 percent, supported by escalating geopolitical tensions between Russia and Ukraine, after Romania, a member of NATO, announced that two people were injured as a result of a Russian drone attack targeting Kiev.
Defense stocks typically benefit from escalating geopolitical tensions, with expectations of increased demand for military equipment and services.
Among the most prominent winners, the shares of the German company CTS Eventim jumped by 11 percent, after announcing a 23 percent increase in revenues in the first quarter of 2026, driven by strong demand for live entertainment events.
