LVMH and other luxury goods shares climbed approximately 5% on Friday. Iranian media reports of a draft peace agreement with the United States drove the market optimism.
The proposed deal includes reopening the Strait of Hormuz and lifting U.S. oil sanctions. These developments signal a potential end to regional hostilities that previously slowed the luxury sector.
Middle East conflict negatively impacted LVMH’s first-quarter revenue growth. Investors now anticipate a recovery in regional sales and tourism following the potential de-escalation.