European Defence Stocks Surge as Ukraine Ratifies €90 Billion EU Loan and Sweden Moves Toward Gripen Fighter Jet Sale, Reshaping Energy-Security Investment Calculus

European defence and security markets moved sharply on Thursday as two major developments converged. Ukraine's parliament ratified a €90 billion ($104.6 billion) loan agreement with the EU, providing a landmark funding commitment for the country's war effort and reconstruction. Separately, Swedish Prime Minister Ulf Kristersson and President Zelenskyy are reported to be preparing to jointly announce an agreement to provide Ukraine with Saab Gripen fighter jets — a potential sale of as many as 150 aircraft under a letter of intent signed in October 2025. Market reaction was immediate: Saab topped the Stoxx 600, closing Thursday 7.4% higher, while German defence components maker Renk advanced 5.4%, France's Exail Technologies rose 13.2%, and Rheinmetall gained 4.2%. The broader energy-security picture remains volatile. Iran's armed forces reportedly fired missiles at unspecified targets late Thursday, with the Pentagon confirming Tehran had also fired a ballistic missile toward Kuwait and deployed attack drones around the Strait of Hormuz. Earlier, a White House official confirmed that the US and Iran had "mostly agreed" on terms for a deal that would extend the current ceasefire by 60 days and create a framework for nuclear programme talks. European equity markets — including the FTSE 100, DAX, and CAC 40 — were positioned to open fractionally higher on Friday as ceasefire optimism offset the renewed military activity. For energy and infrastructure practitioners, the Ukraine loan ratification triggers significant demand for project finance, sovereign debt, and reconstruction work. The Gripen deal, if confirmed, would generate complex cross-border defence procurement legal work.