* The STOXX gained 2.2% to 623.25 points, its highest level since April 17. France's CAC 40 led the regional pack with a 2.9% jump, while the Italian benchmark improved by 2.4%, approaching its highest level since 2000.
* Iran stated it is reviewing a new proposal from the United States, following reports indicating that both sides are close to finalizing a one-page memorandum to end the war in the Persian Gulf.
* Crude oil lost nearly 7%, dragging the energy sector down by 2.5%, the only major STOXX sector to decline. The drop in oil prices helped the travel division advance by 5.8%.
* 'Signs of progress on the deal are, in some ways, more positive for Europe than for the United States, simply because it is a sensitive region,' said Kiran Ganesh of UBS Global Wealth Management. 'Once this Iran issue has passed, the underlying outlook for corporate earnings looks truly solid.'
* Moderating crude prices could ease concerns over energy-driven inflation, a crucial factor that has acted as a significant drag on European equities, which remain below their pre-war levels, while the S&P 500 has hit multiple all-time highs since the start of the war with Iran.
* Banks and industrial stocks rose 3.8% and 3.2%, respectively, leading the European benchmark's momentum during the session.
* Defense sector shares improved by 4.7%. Italy's Leonardo added 5% after announcing higher first-quarter profits, while Norway's Kongsberg also soared 5% after its order book more than doubled during the quarter.
(Edited in Spanish by Carlos Serrano)
