Europe open: Shares rally, oil falls as Trump again claims peace deal is near

12th Jun 2026 07:50

(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 1.23% to 629 at 0832 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.

Reporting by Frank Prenesti for Sharecast.com