Doha: European stocks closed higher today, as investors weighed hopes for a de-escalation of the Middle East conflict against concerns about long-term economic damage.

According to Qatar News Agency, the pan-European Stoxx 600 index rose 0.4 percent to 579.28 points. The telecommunications and energy sectors led the gains, rising 2.5 percent and 2.4 percent, respectively. The travel and leisure sector, which is sensitive to oil prices, also advanced 0.1 percent, despite being one of the hardest-hit sectors in the recent sell-off.

Markets now expect the European Central Bank (ECB) to raise interest rates by at least 25 basis points twice in 2026, a sharp departure from pre-conflict expectations, when policymakers were expected to keep rates unchanged throughout the year.