European shares rebound as worries of US involvement in Middle East ease

European shares rebounded on Friday after three sessions of declines, as a stall in the United States’ involvement in the Middle East conflict came as a relief to worried investors.

The pan-European STOXX 600 was up 0.4% at 537.98 points at 0708 GMT. The benchmark is on track to log weekly declines for a second week.

Israel and Iran’s air war entered a second week and European officials sought to draw Tehran back to the negotiating table after President Donald Trump said any decision on potential U.S. involvement would be made within two weeks.

The news improved market mood and helped recover some interest in risk assets that were being sold off during the week on uncertainty around how long the conflict would go on.

In the market, travel and leisure stocks gained the most, up 1.1%, as oil prices eased.

Conversely, energy shares were at the bottom of the index with a 0.7% decline, trimming some gains from this week. Among stocks, London’s Berkeley was the biggest percentage decliner, down 8%. The homebuilder named current finance chief Richard Stern as its new CEO, but reported an annual pre-tax profit slightly ahead of market expectations.