European shares advanced on Wednesday as softer crude prices eased corporate margin concerns and lifted the pan-European STOXX 600 by 0.4% near two-week highs. Germany's DAX and Italy's FTSE MIB rose 0.4%, while France's CAC 40 and London's FTSE 100 gained 0.5%. Oil prices fell after Saudi Arabia restarted its 1,200-kilometer East-West pipeline following recent drone strikes, potentially allowing crude shipments from Yanbu to resume. Brent crude futures dropped below $100 a barrel after U.S. President Donald Trump said a peace agreement with Iran was close, although Iranian officials maintained demands involving the lifting of U.S. sanctions and naval blockades before reopening the Strait of Hormuz. Chinese President Xi Jinping was due in Washington for talks with President Trump, adding to optimism about an extension of the U.S.-China tariff truce and possible cooperation on artificial intelligence. Investors remained alert to depleted European natural-gas storage, which could lift winter energy inflation, and awaited September flash Eurozone PMI data. Aerospace and defence stocks led existing sectoral gains, while KWS fell 6.1% after reporting a 3% decline in annual net sales to 1.63 billion euros, below the 1.68 billion euro IBES estimate. Adyen slipped about 2% after naming Klarna's Niclas Neglen as its next chief financial officer, effective Feb. 1, 2027.