A framework agreement between the United States and Iran has triggered a broad relief rally across European equity markets, with the German DAX climbing 1.3% to 24,956 points.
The diplomatic breakthrough, confirmed by Pakistan acting as a mediator, signals a potential end to active hostilities and removes a significant risk premium from regional assets.
The market reaction underscores how heavily investors have priced in geopolitical escalation over recent weeks.
With the immediate threat of war receding, capital flows are shifting away from safe-haven assets and back toward cyclical and growth-oriented European equities.
The relief is not merely symbolic; it directly impacts energy logistics and supply chain stability that have weighed on corporate guidance.
This development marks a sharp pivot from the conflicting signals seen just days ago, when Washington claimed a deal was reached while Tehran initially denied it.