Europe midday: Gains held gains despite doubts over Israel-Iran 'ceasefire'
By Frank Prenesti
Date: Tuesday 24 Jun 2025
(Sharecast News) - European stocks surged on Tuesday after Israel and Iran reportedly agreed a ceasefire in their short conflict, although both sides still appeared to be firing missiles at each other.
The pan-regional Stoxx 600 index was up 1.22% at 541 with all major bourses following suit. Israel, which launched strikes against Iran 12 days ago, said it had achieved its objectives, removing "dual immediate existential threat from itself - both in the nuclear and ballistic missile fields".
However, air raid sirens sounded in northern Israel - hours after the US said a deal had been agreed - in response to what the local military said was an Iranian missile launch, about two and a half hours after the ceasefire was first announced.
Media reports said two missiles had been intercepted. Iran denied launching them after the ceasefire but Israeli defence minister Israel Katz said he had ordered immediate retaliation on Tehran.
"I have instructed the IDF to respond forcefully to Iran's violation of the ceasefire with powerful strikes against regime targets in the heart of Tehran," Katz said in a statement.
Iran also overnight fired missiles at a US airbase in Qatar in what was seen as a largely symbolic reprisal for Israeli attacks on Tehran's nuclear infrastructure. Markets fell on Monday when the country threatened to shut down the Hormuz Strait - a key oil supply route.
"Risk assets are back on the menu after (US) President Trump announced a ceasefire has been brokered between Israel and Iran. The details may still be a little up in the air, but global stock markets are pushing higher as a result," said Hargreaves Lansdown analyst Matt Britzman.
"Iran's telegraphed retaliation against the US had already been taken as a sign that de-escalation was the most likely path forward, which had helped lift US stocks, and the rally has extended."
Oil markets slumped in response as the threat to supply was removed. Having jumped above $81 a barrel, Brent crude fell almost 4% to pre-conflict levels of just above $68. Having enjoyed the rally, oil majors were lower in early trade with Equinor, BP, Var Energi, Shell, Eni, Total and Galp all retreating.
In a reversal of Monday's moves, travel and leisure stocks were once again in favour with Tui up almost 8%, IAG surged 7% and easyJet 6.7%. Other major gainers were Carnival, Accor and Lufthansa.
Reporting by Frank Prenesti for Sharecast.com
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