European shares are steady, as investors assessed whether developments in the Middle East would lead towards a peace deal to end the months-long conflict, Reuters reports.

Crude prices eased about 1pc to $96 a barrel after Israel and Lebanon reached an agreement to implement a ceasefire, raising hopes for a broader deal to end the US-Israeli war on Iran.

Wary investors awaited clearer signs that a peace deal could be imminent this time after several rounds that have led nowhere.

The pan-European STOXX 600 index inched up 0.1pc to 621.85 points by 08:49am GMT, with retailers and luxury stocks leading gains, each with a more than 1pc rise.

The benchmark is on track to end the week marginally lower as the Strait of Hormuz, a key global oil shipping route, remained mostly shut.

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