** The pan-European Stoxx 600 index was up 3.8% at 612.96 points by 08:30 GMT, on track for its best session of the year should current momentum persist.
** Regional markets followed suit, with Germany's DAX climbing 4.9%, while London's FTSE 100 rose 2.6%.
** The market reaction was immediate after U.S. President Donald Trump agreed to a two-week truce with Iran, less than two hours before a deadline set for Tehran to reopen the Strait of Hormuz—through which 20% of the world's oil transits—or face devastating attacks on its civilian infrastructure.
** Beyond the immediate relief, investors are waiting to see if the truce can pave the way for a lasting resolution.
** Energy markets also reacted promptly, with Brent crude futures sliding 15% to below $100 a barrel after weeks of elevated oil prices.
** Travel, industrial, and banking sectors saw gains ranging between 5% and 7%, as they are generally considered the primary beneficiaries of lower energy costs and falling government bond yields.
** Conversely, the energy sector shed 4.2% due to the collapse in crude prices.
** Investors will turn their attention to Eurozone retail sales and producer price data due later today, which could provide further insight into the economic impact of recent energy market volatility.
(Translated by Enrico Sciacovelli, editing by Stefano Bernabei)
