European equity markets surged on Monday, reaching their highest levels since early March as optimism surrounding potential diplomatic breakthroughs between the United States and Iran bolstered investor sentiment. The pan-European Stoxx 600 index climbed over 0.8% during afternoon trading, mirroring a broader positive trend in global markets. This rally follows a significant milestone in Asia, where Japan’s Nikkei 225 index surpassed the 65,000 mark for the first time, fueled by reports suggesting the potential reopening of the Strait of Hormuz and a subsequent decline in oil prices.

Market confidence was further supported by comments from President Donald Trump, who described ongoing negotiations with Iran as constructive. The prospect of de-escalation in the region led to a sharp drop in oil prices, which in turn eased inflationary pressures and reduced market expectations for aggressive central bank interest rate hikes. Consequently, Eurozone bond yields saw a notable decline, with German 2-year Bund yields dropping more than 9 basis points to reach their lowest level since early May.

In the corporate sector, Delivery Hero saw its shares jump by more than 10% following news of a potential acquisition. The German food delivery firm confirmed it had received a takeover bid from Uber valued at €33 per share, placing the company’s market capitalization at over €10 billion. While Delivery Hero acknowledged the offer, the company stated it remains committed to its ongoing strategic review process as it evaluates the proposal.