European stock markets rose for a second consecutive month, driven by growing optimism that the United States and Iran will extend a ceasefire agreement and conclude the three-month-long conflict.

The Stoxx Europe 600 index closed up 0.1% on Friday, gaining 2.4% for May. Media and banking stocks led the gains as Brent crude fell to around $92 per barrel, while consumer goods and defensive sectors such as food, beverages, tobacco, and telecommunications underperformed.

Among individual stocks, CTS Eventim AG shares surged 11% after the company reported a significant profit increase in its live entertainment business.

Boosted by strong first-quarter earnings and expectations that the reopening of the Strait of Hormuz could lower energy prices and ease inflationary pressures, the Stoxx 600 is now only about 1% away from the all-time high set in February.

After both sides sent conflicting signals regarding the timing of a potential agreement, U.S. President Donald Trump stated on Friday that he was making a "final decision" on a preliminary deal to extend the ceasefire with Tehran.

Guillermo Hernandez Sampere, Head of Trading at MPPM, commented, "The market is awaiting an agreement on who will control the toll stations at the Strait of Hormuz."