European shares rallied at open on Friday, with all major indexes gaining more than 1%, as oil prices slipped on hopes ‌for a ⁠diplomatic ⁠breakthrough in the Middle East.Brent crude fell more than 2%, extending the previous session's losses, after U.S. President Donald Trump cancelled plans to strike Iran, reducing fears of an escalation of hostilities.The pan-European STOXX 600 index advanced 1.2% to 628.81 points by ​0720 GMT and was set for ⁠a 1% ‌weekly gain. All sectors except energy ​rose.The benchmark ​snapped a four-day losing streak on Thursday, as ⁠investors digested the European Central Bank's rate hike ​and largely looked past escalating rhetoric around ​the U.S.-Iran conflict.Travel and leisure stocks led sectoral gains with a 3.4% rise, with Lufthansa and Air France jumping 4.6% and 5.7%, respectively.Banks gained 2.3%, with Barclays and Standard Chartered climbing more than 2%.AI equipment makers ‌Legrand and Schneider Electric climbed 1% and 1.4%, respectively.Novo Nordisk added 0.4% after Britain's medicine regulator ​approved the ​drugmaker's weight-loss ⁠pill on Thursday, making the UK the first market in Europe where patients can access the oral treatment.Among other movers, ​online gaming operator Entain rose 3.2% after Barclays upgraded the European gaming sector to "market-weight".On the data front, German inflation eased slightly to 2.7% in May, while Britain's economy contracted by 0.1% in April.