Europe midday: Shares hold gains on Trump peace deal claims

12th Jun 2026 11:13

(Sharecast News) - European sharemarkets rallied and oil prices fell on Friday after US President Donald Trump paused threatened air strikes against Iran and once again claimed a deal on ending his war of choice with Tehran was close.

The pan-regional Stoxx 600 index was up 1.49% to 630 at 1149 BST with all major bourses following suit.

Oil prices slid below $90 a barrel on the news with Brent crude down 2% to $88 and West Texas Intermediate 1.88% lower at $86.

Trump said a deal ending the war and reopening the Strait of Hormuz could be signed this weekend although Iranian officials strenuously denied this claim.

"It has the feel of a classic "escalate to de-escalate" playbook. Still, with the US mid-term elections approaching and the economic stakes rising globally, there is a clear incentive on all sides to find a quick resolution," said Hargreaves Lansdown analyst Matt Britzman.

The news saw rises in airline stocks on hopes of a settlement and lower fuel costs with Lufthansa and Ryanair making gains, while oil majors Equinor, Var Energi, Eni, Total and Repsol all fell.

In economic news, German inflation was confirmed at 2.7% last month, easing from April's 2.5%.

Reporting by Frank Prenesti for Sharecast.com