Europe open: Shares rally on Israel-Hezbollah 'ceasefire' agreement

(Sharecast News) - European shares rallied on Thursday as Israel and the Iran-backed Hezbollah militia agreed a tentative "ceasefire", raising hopes of progress on a resolution to the US-Iran war. The pan-regional Stoxx 600 index was up 0.37% to 623 at 0841 BST with all regional bourses also higher.

Israel and Lebanon agreed to implement a ceasefire to end hostilities, according to the US State Department, as US President Donald Trump scrambled to reaching a deal to end his war of choice with Iran.

The ceasefire is contingent on a complete cessation of fire from Hezbollah and evacuation of all its fighters from the area south of the Litani river in southern Lebanon, according to a joint statement released by Washington.

However, despite the joint commitment to a ceasefire, Israel carried out multiple drone strikes in the Nabatieh area of southern Lebanon on Thursday morning. The deal was also not ratified by Hezbollah itself, with Lebanese government conducting negotiations as it tries to break the militia's grip on the country.

The news also saw Brent crude oil slip below $97 with traders cautious on how long any ceasefire can hold while Israeli still maintains an occupation force in Lebanon and continues to bomb civilian infrastructure.

On a quiet day for corporate news, shares in trading platform CMC Markets as the company said 2027 operating income would beat analyst forecasts.

Reporting by Frank Prenesti for Sharecast.com