European Stocks Trade Mixed as Iran Tensions Keep Investors Cautious
European stock markets traded mixed on Monday as investors reacted cautiously to renewed geopolitical tensions following President Donald Trump’s rejection of Iran’s response to a U.S. peace proposal.
Trump described Tehran’s counteroffer as “TOTALLY UNACCEPTABLE” over the weekend, increasing concerns that the conflict in the Middle East could continue for longer than expected.
European Markets Show Mixed Performance
By early trading hours, the pan-European Stoxx 600 index remained largely unchanged.
Germany’s DAX index edged 0.1% higher, while the U.K.’s FTSE 100 gained 0.4%.
France’s CAC 40 index underperformed regional peers, falling 0.5% as investors assessed the broader impact of geopolitical risks and rising oil prices.
Iran Responds to U.S. Peace Proposal
According to Iranian state television, Tehran formally responded to a U.S. proposal aimed at ending the conflict, which has now lasted for more than two months.
Iran’s proposal reportedly focused on ending military operations across all fronts while also demanding compensation for war-related damages.
Tehran also emphasized its control over the Strait of Hormuz, one of the world’s most strategically important shipping routes through which roughly 20% of global oil supplies pass.
The strait has remained heavily disrupted during the conflict and is currently affected by both U.S. and Iranian blockades.
Oil Prices Continue to Climb
Oil prices moved sharply higher following the latest developments in the Middle East.
Brent crude futures rose 3.4% to $104.69 per barrel, remaining well above levels seen before the conflict began.
The continued rise in energy prices has increased fears of a new global inflation surge, with investors worried that central banks may need to keep interest rates elevated for longer.
Trump Rejects Iran Counteroffer
Shortly after Iran presented its response, President Trump criticized the proposal on social media, saying he did not “like” it.
The United States has reportedly pushed for a rapid end to the conflict before entering broader negotiations over Iran’s nuclear program and other long-term security issues.
Markets now remain focused on whether diplomatic efforts can resume or if tensions in the region will continue escalating.
AI Stock Boom Continues to Support Markets
Away from geopolitical concerns, investors also continued monitoring the strong rally in artificial intelligence-related stocks.
Ongoing enthusiasm surrounding AI companies has helped U.S. equity markets remain resilient despite rising tensions in the Middle East.
Wall Street recently reached fresh record highs as investors continued pouring capital into technology and semiconductor companies benefiting from AI-driven demand.
Delivery Hero Shares Jump After Stake Sale
Among individual European stocks, Delivery Hero shares climbed more than 5% after Prosus sold a 5% stake in the company to Hong Kong-based investment firm Aspex.
The transaction was valued at approximately 335 million euros and helped boost investor confidence in the food delivery company.
