Europe’s relatively cheap stocks could become attractive for investors as the oil prices plunged and markets hope the Hormuz crisis is over, according to JPMorgan.Assuming that the Middle East crisis has peaked and oil prices drop, investors are likely to return to their positioning from before the war, Karen Ward, chief market strategist for Europe, the Middle East and Africa (EMEA) at JPMorgan Asset Management, told Bloomberg in an interview published on Thursday.Before the Middle East conflict erupted at the end of February, investors were seeking diversification from the tech and AI story in the U.S. and Asian markets, and were scouring global stocks for cheaper investments.Set OilPrice.com as a preferred source in Google here.Europe fits the bill on both counts, as the European stock valuations are lower than the ones in the U.S., according to JPMorgan’s Ward.Europe has been overlooked by investors for years because of the lower returns, but the expected slump in oil prices could offer cheap entry into European stocks, Ward told Bloomberg, although she admitted that few other experts share the enthusiasm about Europe’s stock markets.Many clients and investors continue to believe that Europe is “structurally incapable of growth,” Ward told Bloomberg.“I’m really bullish on Europe and it’s because no one agrees with me, so that tells me I must be right,” JPMorgan’s strategist said.“When we start to see this Iran problem fade and oil prices fall back, that European story is going to get unleashed.”Still, European Central Bank (ECB) officials warned this week that Europe will have to contend with the energy price shock for months despite the tentative U.S.-Iran agreement to end the war and reopen the Strait of Hormuz.ECB officials, who last week raised key interest rates for the euro area for the first time since 2023, are not ruling out further increases this year, despite the U.S.-Iran deal, as the energy price shock is expected to linger for months to come.By Michael Kern for Oilprice.comMore Top Reads From Oilprice.comIndia’s Energy Import Bill Jumps 82% Due to High Oil PricesArgus: U.S-Iran Deal Won’t Lead to One-Way Traffic to Plunging Oil PricesAustralia’s Renewable Project Pipeline Is Booming