European shares were muted on Monday, as stalled U.S.-Iran peace negotiations pushed oil prices higher and weighed on risk appetite.
The pan-European STOXX 600 was flat at 611.67 points, as of 0703 GMT. Regional bourses moved in different directions, with London’s FTSE 100 adding 0.2%, while France’s CAC 40 dipped 0.5%.
U.S. President Donald Trump rejected Iran’s response to a U.S. peace proposal, calling it “totally unacceptable.” Tehran proposed ending the war on all fronts, including Lebanon, along with compensation for war damage and claimed sovereignty over the Strait of Hormuz, Iranian state TV said.
European shares slide as Middle East tensions flare
The war has shuttered the Strait of Hormuz, a vital waterway for a fifth of global oil and liquefied natural gas flows, with soaring oil prices adding to concerns over the conflict’s impact on inflation and growth.
Energy-dependent Europe remains vulnerable, with markets still trading below pre-war levels.
Among early movers, UK’s Compass Group gained 3.8% after the world’s largest caterer raised its full-year profit outlook.
Shares of Delivery Hero rose 3.7% after Dutch technology investor Prosus sold a 5% stake in the German food-delivery group to activist investor Aspex Management for roughly 335 million euros ($393 million).