European Stocks Rebound on Hopes of Fast Resolution to Iran War

European stocks posted their biggest gain since November on increased investor optimism for a short-lived conflict in the Middle East.

The Stoxx Europe 600 gained 1.4% by the close after the New York Times reported that Iran made indirect contact with the US to negotiate an end to the war, though Iran denied the report. US Defense Secretary Pete Hegseth said that he expected control of Iranian skies “in under a week.”