European shares climb as US-Iran peace optimism lifts risk sentiment

European shares climbed nearly 1% on ‌Monday, as a pause in U.S.-Iran hostilities over the weekend sent oil prices lower and boosted risk appetite, while investors ​braced for a pivotal week of earnings from ​major U.S. tech companies.

The pan-European STOXX 600 index ⁠was up 0.8% at 649.34, as of 0706 GMT.

A ​senior Iranian official told Reuters that Iran would halt attacks if ​the U.S. does the same, after Washington paused its bombing campaign amid concerns about depleting its arsenal.

Brent crude futures dropped 6% ​to around $90 a barrel, with energy stocks losing 2%, ​joining utilities as the only declining sectors in the STOXX 600.

Travel ‌and ⁠leisure stocks led broader gains, up 2.4%, as lower oil prices boosted the outlook for airlines. Shares of Lufthansa and IAG gained 3.7% each, while Ryanair added ​3.4%.

This week, markets ​will scrutinize ⁠quarterly results from U.S. Big Tech companies including Microsoft, Meta Platforms, Amazon and Apple ​for signs on whether the AI-driven rally ​has further ⁠room to run.