European markets surge as US-Iran tensions ease

European stock markets recorded significant gains on November 10, 2026, nearing historic highs following comments from US President Donald Trump regarding Iran. Trump downplayed the necessity for immediate military action and indicated a move toward conflict resolution, which triggered a decline in oil prices, with Brent crude falling by 3% to $89.7 per barrel.

The pan-European STOXX 600 index closed at 658.32 points, reflecting a 0.27% increase and positioning it only 0.8% below its August record. Market performance was mixed across major indices: the DAX in Frankfurt rose 0.47% to 26,390.22 points, the CAC 40 in Paris gained 0.55% to 8,278.59 points, the FTSE MIB in Milan grew 0.69% to 51,755.08 points, and the IBEX 35 in Madrid surged 1.10% to 19,959.90 points. Conversely, the London FTSE 100 declined by 0.29% to 10,751.59 points.

The rally was primarily driven by the banking sector, which saw a 1.7% increase, and renewed optimism that reduced geopolitical tensions could curb energy-related inflation. By easing inflationary pressures, investors expect central banks may be under less pressure to raise interest rates, providing relief to sectors like aviation.