European stocks edged higher on Monday, extending a record close as investors cheered news the Strait of Hormuz could reopen later this week. The Stoxx Europe 600 finished up 0.2% significantly, with banking and industrial shares leading gains while telecom and technology lagged. Momentum built ahead of the US‑Iran interim deal slated for signing in Switzerland on Friday, reinforcing global risk sentiment.

Oil slipped toward its longest losing streak this year as the expected Strait reopening raised supply forecasts. The European benchmark posted its first record high since the early Iran‑war period, but remains behind other regions because of limited exposure to AI‑driven tech stocks. Panmure Liberum’s Joachim Klement warned, “AI stocks are in a bubble; Europe needs that bubble to pop before it can outperform.”

Siegfried Holding AG tumbled 7.6% after UBS cut its rating to neutral, citing another year of muted organic growth through 2026. The downgrade pulled the Swiss pharma supplier lower even as broader markets rallied on geopolitical optimism. Investor focus now shifts to whether sector‑specific setbacks can outweigh the buoyant sentiment surrounding the Hormuz reopening.