European equities climbed for a third session following reports of U.S.-Iran talks, with the Stoxx Europe 600 Index closing 1.5% higher. The advance marks its longest winning streak this month, fueled by de-escalating Middle East tensions.

Hope for a diplomatic resolution tempered oil market volatility. Brent crude plunged 5.5%, settling near $105 per barrel, alleviating immediate inflation pressures and boosting equity valuations across the region.

Lower energy costs directly support consumer spending and corporate margins. This price retreat eases a key headwind for the European economy, providing a tangible boost to market sentiment and growth prospects.