Oil Price Dip Lifts European Stocks, But Mideast Risks Linger

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

The index had lost around 3% in the previous three weeks. Oil prices fell as hopes of a truce in the Middle East outweighed 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, according to sources close to the talks.