European stocks surged to one-month highs on Wednesday after the US agreed to a temporary ceasefire with Iran that before widespread attacks threatened by the US. The Eurozone's STOXX 50 surged 4.6% to 5,693 and the pan-European STOXX 600 gained 3.7% to 612. The agreement was due to last two weeks and signaled that tanker flows through the Hormuz chokepoint will be restored. Still, continuous attacks on GCC members and muted vessel traffic through the Strait so far limited optimism for the sure end of hostilities. Lower concerns of an energy shock triggered a plunge in oil and natural gas benchmarks in Europe, pressuring bond yields. The consequent improvement in the credit outlook supported banks with Santander, UniCredit, and BNP Paribas gaining nearly 8% each, while risk sentiment supported speculative AI positions with ASML and Infineon surging around 10% each. In turn, lower gas prices improved margins for industrials with Siemens, Safran, and Schneider surging over 10%.