European shares surged on Friday as renewed ‌hopes for a diplomatic breakthrough in the Middle East dragged oil prices lower and injected fresh optimism into the market. Sentiment was also buoyed as Elon Musk’s SpaceX jumped after floating in New York. Brent crude futures fell ​3.7 per cent, extending the previous session’s losses, after US president Donald Trump cancelled plans to strike Iran and said a deal could be reached as soon as this weekend.The pan-European Stoxx 600 index jumped 1.9 per cent to 633.21 points, logging 1.7 per cent gains for the week.DUBLINThe Iseq All-Share index jumped 2.6 per cent to 13,532.35. Banking stocks were in demand, with AIB rising 2.7 per cent to €10.36, while Bank of Ireland advanced 2.5 per cent to €17.54. Glanbia fell 3.2 per cent as its largest shareholder, Tirlán, placed a 5 per cent stake in the nutrition group, raising almost €260 million. Oil sensitive Ryanair jumped 2.4 per cent to €25.09, while Irish Continental Group (ICG) rose 2.5 per cent to €6.48. LONDON Oil majors BP and Shell unsurprisingly missed out on the market rally as the oil price fell, dropping 2 per cent and 1.7 per cent respectively.Shell announced a pause in its $3 billion (€2.6 billion) share buyback programme until mid-July. This reflects securities law requirements that apply to Shell relating to its agreement to buy Canadian energy group, ARC Resources.Rising metals prices saw gains for Antofagasta, Anglo American and Fresnillo, up 4.9 per cent, 5.2 per cent and 4.5 per cent respectively. British Airways owner, International Consolidated Airlines – which also owns Aer Lingus – climbed 7.1 per cent on hopes of lower fuel costs and a pickup in travel.Scottish Mortgage Investment Trust, an investor in SpaceX, saw its shares marked up 1.7 per cent, while Rolls-Royce was lifted 4.4 per cent on hopes for a US-Iran peace deal and as Berenberg upgraded to buy. EUROPE Spain’s Ibex 35 Index ​outperformed regional peers, climbing more than 2.6 per cent and hitting an all-time high.Travel and leisure stocks were the day’s top performers on the Stoxx, rising 4.1 per cent and hitting a five-month high. Airlines Lufthansa and Air France added 5.2 per cent and 8.4 per cent, respectively, while travel group Tui jumped 8.7 per cent.Banking stocks were also higher, with Deutsche Bank and Société Générale climbing more than 6 per cent each. Acciona Energia jumped 13 per cent after media reports said global infrastructure funds were teaming up to bid ‌for stakes in the Spanish ⁠renewable energy firmNovo Nordisk added 1.7 per cent after the UK’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.NEW YORKThe main stock market indices were ahead in early afternoon trading as Elon Musk’s SpaceX floated on the Nasdaq, while hopes for an imminent ​Middle East peace deal buoyed overall sentiment.The stock jumped 11 per cent at the start of trading to open valued at $2 trillion (€1.73 trillion) in a record-breaking stock market debut. It makes Musk the world’s first paper trillionaire and cements his position as the richest man on the planet.Shares of other space stocks, which have soared in ​the lead-up to the debut, eased on Friday. Rocket, Intuitive Machines ​and Planet Labs all dropped. Chip stocks were volatile, with Advanced Micro Devices rising after Citigroup raised its rating to buy. Adobe slid after the exit of its chief financial officer, Dan Durn.On the macro front, a survey showed that consumer sentiment fared better than expected this month, while data ‌earlier this week showed inflation pressures were mounting. – Additional reporting, Reuters