Brent crude prices continue their downward trend, now trading at $83.60, while the European volatility index has retreated to its lowest level since February 26, just prior to the outbreak of hostilities.

Construction, automotive, and tourism stocks are among the primary beneficiaries of the rally. In Paris, Air France-KLM climbed nearly 3%, as did Accor, supported by the prospect of a lasting easing of geopolitical tensions.

Conversely, TotalEnergies fell 5% to the bottom of the CAC 40, weighed down by the decline in oil prices following hopes for the reopening of the Strait of Hormuz.

Saint-Gobain (+5.65%) led the gains on the Parisian benchmark after announcing a definitive agreement to divest its specialized distribution businesses in Sweden, Norway, and Denmark: primarily operated under the Dahl brand: to Kesko, a major Northern European trading firm.

Elsewhere in Europe, on the Vienna Stock Exchange, AT&S (Austria Technologie & Systemtechnik) surged 28% following a massive upward revision of its targets linked to a partnership with U.S. giant AMD.

Overnight Sunday, Washington and Tehran announced a memorandum of understanding aimed at ending regional hostilities. The agreement, scheduled for signing on June 19 in Geneva, serves as a framework for a 60-day negotiation phase covering the Iranian nuclear program, enriched uranium stockpiles, and the lifting of U.S. sanctions.

Donald Trump praised the deal on Truth Social, announcing the reopening of the Strait of Hormuz without transit fees and the lifting of the U.S. naval blockade. "Ships of the world, start your engines. Let the oil flow!" he wrote.

On the Israeli side, Defense Minister Israel Katz indicated that his country expects the agreement to guarantee the shared objective with the U.S. of preventing Iran from acquiring nuclear weapons. He also reaffirmed that Israel would maintain its freedom of action to counter this threat and uphold its security positions in Lebanon, Syria, and Gaza.

Investors will focus this week on several major central banks, including the U.S. Federal Reserve (Fed), the Bank of Japan (BoJ), and the Bank of England (BoE), as they prepare to announce their monetary policy decisions.

This Monday, several data points will be monitored, including the trade balance and industrial production in the Eurozone. In the currency markets, the euro edged up 0.02% to $1.1605.