Iran's two-week cease-fire with the U.S. has dramatically lowered oil prices below $100 a barrel, triggering significant gains across European engine makers, defense firms, and travel stocks. France's Safran surged 11%, Britain's Rolls-Royce climbed 10%, and Germany's MTU Aero Engines rose 6.2%. Defense and aerospace companies like Airbus, Indra Sistemas, and Babcock International Group also rose, with Germany's Rheinmetall and Renk Group advancing. Oil prices falling below $100 directly fueled these gains, as lower fuel costs boost transportation and airline profitability.

The cease-fire's impact extended to European travel stocks, with Wizz Air jumping 15%, Air France up 14%, and TUI rising 12%. IAG (British Airways owner) gained 9.2%, while Lufthansa, easyJet, and Ryanair saw double-digit increases. Jet2 shares rose 7.7%. Front-month Brent crude futures slid 15% to $92.90, and West Texas Intermediate futures fell 18% to $94.63.

The cease-fire's temporary nature and unresolved demands, however, leave long-term stability uncertain.