European stocks recovered on Friday as easing oil prices lifted sentiment, though telecom shares tumbled after SpaceX moved to challenge legacy wireless giants.

The pan-European STOXX 600 climbed 0.8 per cent to 630.47 by mid-morning, rebounding from a near four-month low hit on Thursday. Oil prices dipped nearly 1 per cent after US President Donald Trump said Washington would not attack Iran before next month's elections, easing supply fears.

Eurozone bond yields also pulled back from multi-decade highs as inflation worries cooled. Banking, software and mining stocks led the advance.

Telecoms were the weak spot. The sector index fell 2.7 per cent after SpaceX struck a deal to acquire a nationwide low-band spectrum portfolio, mounting a direct orbital challenge to traditional carriers.

Deutsche Telekom dropped 7 per cent. The German giant holds a 54 per cent stake in T-Mobile US, which slid 6 per cent in after-hours trading. Britain's Vodafone fell 3.5 per cent, France's Orange 2.4 per cent and Spain's Telefonica 2.3 per cent.