(Il Sole 24 Ore Radiocor) - Milano, 6 mag - European shares closed sharply higher as oil prices tumbled easing inflation concerns amid growing optimism that the US and Iran are close to reaching a peace deal.

Reports today citing US and Pakistan officials said Washington and Tehran are in advanced talks on a one-page memorandum to end the war in the Gulf, with one report saying a decision could come in the next 48 hours. In comments to the press, the Pakistan prime minister said momentum was building.

The developments come after US president Donald Trump said he was pausing 'Project Freedom,' the US's plan to convoy ships out of the Strait of Hormuz.

On the data front, Eurostat reported that industrial producer prices in the euro area increased by 3.4% month on month in March compared to a 0.6% fall in February, while prices rose 2.1% on a yearly basis.

In France, industrial production rose a seasonally-adjusted 1.0% in March after a 0.9% fall in February.

Regarding the services sector, the April PMI for the eurozone fell to 47.6 from 50.2 in March, with the composite index decreasing to 48.8 from 50.7.

Germany's services index dropped to 46.9 from 50.9 and its composite fell to 48.4, while France's services PMI slipped to 46.5 from 48.8 and its composite reached 47.6.

In Italy, the services PMI rose to 49.8 from 48.8. Spain's services index slumped to 47.9 from 53.3 while the composite fell to 48.7. The UK's services PMI rose to 52.7 from 50.5 and its composite increased to 52.6.

The London FTSE 100 closed up 2.15% at 10,438.66 points, the Frankfurt DAX rose 2.09% at 24,900.98 points, the Paris CAC 40 jumped 3.18% at 8,318.53 points, while in Milan the FTSE MIB added 2.35% at 49,696.75 points, and in Madrid the IBEX.

35 closed 2.41% higher at 18,093.60 points.

(RADIOCOR) 06-05-26 18:25:58 (0700) 5 NNNN