(Updates to after markets open, adds record high on STOXX 600)

June 15 (Reuters) - Europe's STOXX 600 opened at a record

high on Monday, with most sectors gaining after the United

States and Iran reached a preliminary peace agreement that would

open the Strait of Hormuz and end the three-month-long conflict

in the Middle East.

Global risk sentiment got a lift and Brent crude prices fell

4% after U.S. and Iranian officials said they had agreed on a

framework for a deal, scheduled to be signed on Friday.

The pan-European STOXX 600 index rose 1.2% to

640.94 points by 0711 GMT, surpassing its previous record high

hit on February 27. With Monday's gains, the benchmark index

reclaimed all of its conflict-related losses.

A majority of sectors advanced, led by a 3.5% gain in auto

stocks, while energy price-sensitive airlines such as

Lufthansa and Air France jumped more than 5%

each. The broader travel and leisure sector hit a record

high.

European shares had broadly underperformed their peers in

the U.S. and Asia since March, largely due to the continent's

reliance on the Strait of Hormuz for crucial oil supplies.

Concerns over energy-driven inflation had the European

Central Bank hike interest rates by 25 basis points last week.

Traders continue to anticipate another 25-bp ECB rate hike

before the end of the year, according to LSEG-compiled data.

In corporate news, Renault Group gained 5% after

the carmaker said it will develop a military vehicle in

partnership with defence technology company Thales.

AI equipment maker Schneider Electric climbed 3.3%

after entering a strategic collaboration with Taiwan's Foxconn

to develop and scale infrastructure for

next-generation AI data centres.

Among laggards, energy stocks fell 2.7%, tracking

lower crude prices.