European stock markets are projected to open slightly higher on Friday as investors assess the potential extension of a fragile U.S.-Iran ceasefire agreement. According to data from IG Group, Germany's DAX index is expected to open 0.28% higher, France's CAC 40 index is forecast to rise 0.22%, while the UK's FTSE 100 index is anticipated to open largely flat. Asian markets remained unaffected by Iran's latest military actions, with South Korea's KOSPI and Japan's TOPIX indices both reaching new record highs overnight. Iran's official Fars News Agency reported that the country's armed forces launched missiles at several unspecified targets on Thursday evening. This military activity in southern Iran occurred hours after the U.S. Department of Defense stated that Iran had fired a ballistic missile towards Kuwait and deployed attack drones in and around the Strait of Hormuz. Earlier on Thursday, a White House official confirmed a report by Axios, indicating that the U.S. and Iran have largely reached an agreement on terms for a temporary cessation of the three-month-long conflict. Reports suggest the proposed agreement would extend the existing ceasefire by 60 days and establish a framework for subsequent negotiations on Iran's nuclear program. The pan-European STOXX 600 index experienced volatile trading on Thursday, ultimately closing 0.5% lower, with most sectors ending in negative territory. Major indices in London, Paris, and Frankfurt all declined. European markets are expected to recover some of these losses on Friday. Europe's defense sector bucked the overall market trend. The Ukrainian parliament's approval of a European Union agreement to provide €90 billion (approximately $104.6 billion) in loans to Ukraine boosted defense stocks. Reports on Thursday cited anonymous sources stating that Ukrainian President Volodymyr Zelenskyy and Swedish Prime Minister Ulf Kristersson will jointly announce Sweden's provision of Gripen fighter jets to Ukraine. The two countries had previously signed a letter of intent in October last year, under which Sweden plans to sell up to 150 Saab Gripen aircraft to Ukraine. Swedish aircraft manufacturer Saab AB led gains on the STOXX 600 index, closing 7.4% higher for the day. German tank component maker Renk Group rose 5.4%. French company Exxelia Technologies and Germany's Rheinmetall saw their shares surge by 13.2% and 4.2%, respectively.