European Stocks Slip as Oil Rebounds and Tensions Rise
European stock markets moved lower on Thursday, as a rebound in oil prices and renewed geopolitical tensions in the Middle East weighed on investor sentiment following the previous session’s rally.
The pan-European Stoxx 600 declined 0.2%, while Germany’s DAX dropped 1.4% and France’s CAC 40 fell 0.2%. The UK’s FTSE 100 also edged down by 0.1%.
Ceasefire Uncertainty and Rising Geopolitical Risks
Market sentiment weakened after U.S. President Donald Trump warned that American military forces would remain positioned around Iran until a full agreement is enforced. He also signaled the possibility of further action if ceasefire terms are violated.
Uncertainty surrounding the fragile U.S.-Iran ceasefire continues to grow. Iran has indicated that negotiations may be unrealistic under current conditions, despite plans to send a delegation to Pakistan for talks.
At the same time, ongoing Israeli strikes in Lebanon — including attacks on residential areas causing significant casualties — have raised concerns about a broader regional escalation.
Oil Prices Rebound on Supply Disruptions
Oil markets recovered on Thursday after sharp losses in the previous session, driven by continued supply concerns linked to disruptions in the Strait of Hormuz.
Brent crude rose 2% to $96.61 per barrel, while U.S. crude gained 5% to $99.11. Limited and tightly controlled shipping activity through the key waterway has supported prices.
Although a ceasefire is technically in place, vessel movement remains restricted, with Iran maintaining strong control over transit routes, keeping supply risks elevated.
Gold Gains on Safe-Haven Demand
Gold prices moved higher as investors turned to safe-haven assets amid escalating tensions in the Middle East.
Spot gold increased 1.6% to $4,795.91 per ounce, while U.S. gold futures for June rose 0.9% to $4,820.15 per ounce. The gains came despite pressure from a stronger U.S. dollar and rising bond yields.
