European stock markets concluded the week close to record highs, buoyed by speculation that the United States and Iran are nearing an agreement to reopen the Strait of Hormuz, which contributed to a decline in oil prices.

The Stoxx Europe 600 index closed up 1.9%, approaching its pre-war peak from February. Oil prices extended their losses, with Brent crude falling nearly 4% to around $87 per barrel. Travel and banking stocks led the gains, while the energy sector was the sole decliner. Traders are closely monitoring developments in the US-Iran peace agreement negotiations.

On Friday, travel and leisure stocks outperformed, influenced by the drop in oil prices. Shares of TUI Group and International Consolidated Airlines Group (IAG), the parent company of British Airways, both rose more than 7%.

Global attention was also focused on the first trading day for SpaceX. The company's shares advanced on their market debut, climbing nearly 28% as of 2:05 p.m. New York time.

"It has been a truly volatile week," stated Vincent Juvyns, Chief Investment Strategist at ING in Brussels. He referenced heightened market sentiment surrounding AI investments and the SpaceX listing, adding that "many investors are concerned about missing out."

Concurrently, European Central Bank Governing Council member Joachim Nagel indicated that the ECB is prepared to act again in July if shocks stemming from the Middle East conflict necessitate further interest rate hikes.