European shares rise on signs of progress in US-Iran peace talks

European shares moved higher on Friday with investors optimistic about signs of ‌progress in U.S. and Iran peace talks despite both sides remaining at odds over key issues.

The pan-European STOXX 600 gained 0.5% to 623.79 points, as of ‌0703 GMT, and was on track to end the week with gains. Key ‌disagreements between Tehran and Washington involve Iran's uranium stockpile and controls on the Strait of Hormuz, a vital waterway for over 20% of the world's energy needs.

U.S. ⁠Secretary of ​State Marcio ⁠said there had been "some good signs" in talks, while a senior Iranian source told Reuters that ⁠gaps between the two sides had narrowed. Analysts expect an agreement that includes ​the opening of the strait to lift European equities that have ⁠lagged peers as the region's dependence on oil imports weighs on markets and drives inflation.

Official ⁠data ​showed German consumer sentiment recovered heading into June, while a separate reading confirmed that the economy grew by 0.3% in the first ⁠quarter of 2026. The DAX gained 0.7%. Money markets price in at least two ⁠rate hikes ⁠from the European Central Bank before the end of the year.

Among early movers, Cartier-owner Richemont advanced 4.2% after reporting ‌better-than-expected ‌fourth quarter revenue.

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