European Stocks Rise as Oil Prices Fall, Middle East Risks Linger

European stocks are on track to end a three-week losing streak as oil prices retreat. The pan-European STOXX 600 rose 0.6% to 640.43 points by 0821 GMT, putting it on course for nearly a 1% weekly gain.

The index had lost around 3% in the previous three weeks. Oil prices fell due to truce hopes outweighing Houthi attacks on Saudi Arabia. Negotiators are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran.

Energy shares fell 0.7%, while airline stocks advanced, with Ryanair and Lufthansa gaining more than 2% each. The travel and leisure index rose 1.2%. Basic resource shares rose 1.14%, on gains in Pan African Resources and Glencore PLC.

UBS upgraded its rating on Glencore to 'buy' from 'neutral'. Euro zone government bond yields were on track for their seventh consecutive weekly rise as crude prices remained near $100 a barrel.