LVMH, Kering, and Hermès shares rose approximately 4-5% on June 12. This rally followed reports of a proposed peace agreement between the U.S. and Iran. The deal aims to reopen the Strait of Hormuz and lift existing oil sanctions.
Regional conflict previously pressured the luxury sector by reducing sales in the high-growth Middle East market. LVMH reported that the geopolitical tension halved its quarterly growth rate. Investor optimism regarding regional stability drove the broad sentiment boost for luxury brands.