Why did European stocks rally on Friday, and which sectors saw the strongest gains?

European stocks rallied on Friday because oil prices dropped more than 2% after U.S. President Donald Trump cancelled plans to strike Iran, reducing fears of Middle East conflict escalation; the pan-European STOXX 600 index rose 1.2%, with travel and leisure stocks leading sectoral gains at 3.4%, driven by sharp jumps in Lufthansa (+4.6%) and Air France (+5.7%), while banks rose 2.3% and AI equipment makers Legrand and Schneider Electric gained 1% and 1.4% respectively.

What key regulatory and economic developments were reported alongside the market rally?

Alongside the market rally, Britain's medicine regulator approved Novo Nordisk's oral weight-loss pill — making the UK the first European market where patients can access it — prompting a 0.4% rise in Novo Nordisk shares; meanwhile, German inflation eased to 2.7% in May, and Britain's economy contracted by 0.1% in April.

European Stocks Rally as Oil Prices Drop on US-Iran Deal Hopes

Jun 12, 2026

European stocks rallied over 1% as Brent crude oil prices fell following President Trump's cancellation of planned strikes on Iran. Novo Nordisk shares rose after its oral weight-loss pill received UK regulatory approval.

reuters

2026-06-12

European Stocks Rally as Oil Prices Drop on US-Iran Deal Hopes

European Stocks Rally as Oil Prices Drop on US-Iran Deal Hopes

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