European shares secure monthly gains on Middle East peace hopes

European shares finished May on a cautious note, buoyed by hopes of a Middle East ceasefire extension and a reopening of the Strait of Hormuz. The pan-European STOXX 600 advanced 0.1% to 626 points, delivering a 2.5% monthly gain after trading near record levels earlier in the week. Oil prices slid, tempering energy stocks as traders awaited a potential U.S.–Iran accord, with President Donald Trump indicating a final decision would come on Friday. A missed deadline in early June could unsettle oil markets and the global stock rally, according to market commentators. In broader sentiment, inflation in the euro zone’s four-largest economies remained above 2%, reinforcing expectations for ongoing ECB tightening.