The ZEW Indicator of Economic Sentiment for the Euro Area rose by 13.9 points to 23.4 in June 2026, the highest in five months and beating market expectations of 11.2. The uptick suggests sentiment is improving, as markets continue to price in hopes of a resolution to the Iran conflict. In June, 64% of analysts expected no change in economic activity, while 29.7% anticipated an improvement and 6.3% expected deterioration. The assessment of the current situation also improved, with the index rising 5.7 points to -37.7, while inflation expectations dropped 35.4 points to 10.4.