Luxury stocks jump as US-Iran deal hopes lift LVMH 5%
Why it matters: A draft accord would reopen the Strait of Hormuz and ease oil sanctions, cutting pressure on energy prices and inflation.
Luxury shares rose sharply Friday after reports of a tentative U.S.-Iran agreement that could reopen the Strait of Hormuz and lift U.S. oil sanctions. LVMH, Kering and Hermes gained about 5%, while Richemont rose roughly 3.4% as the Stoxx 600 advanced 1.8%. The sector had been hit hard by the Iran war, which began in late February and hurt sales in the Middle East, a fast-growing market for high-end brands. Companies and analysts have also warned that weaker tourism and a gloomier economic outlook could curb discretionary spending more broadly. The draft 14-point memorandum is still subject to final documents, but investors cheered the prospect of lower energy costs and easing inflation pressure.