European stocks climbed Thursday as oil prices fell, driven by optimism that the United States and Iran are moving closer to an agreement to resolve their nearly three-month conflict. Markets reacted positively to the potential diplomatic breakthrough, with regional indices posting gains.

Oil prices declined amid expectations that a deal between Washington and Tehran could increase global supply, easing concerns about energy shortages. Delivery Hero jumped on the news, reflecting investor enthusiasm for sectors that benefit from lower energy costs and improved market stability.

Italian equities notched a fresh record high, outperforming other European markets. The Italian benchmark's rise signals growing confidence in the Eurozone economy despite ongoing geopolitical tensions and inflation pressures.