European Stocks Edge Lower as Iran War Concerns Persist
European equities moved lower on Friday, as fading expectations for a near-term resolution to the Iran conflict and ongoing worries about oil supply disruptions weighed on investor sentiment.
Major European Indices Decline
By early trading hours, the Stoxx Europe 600 dropped 0.4%. Germany’s DAX slipped 0.1%, while France’s CAC 40 and the U.K.’s FTSE 100 both declined by 0.4%.
Ceasefire Efforts Offer Limited Market Relief
Donald Trump announced a three-week extension of the ceasefire between Israel and Lebanon following diplomatic talks. However, the absence of Hezbollah representatives raised doubts about how sustainable the truce would be.
Earlier in the week, Trump also declared an indefinite ceasefire between the United States and Iran, while maintaining a naval blockade on Iranian ports.
Strait of Hormuz Tensions Drive Oil Concerns
Uncertainty remains high as Iran responded to the U.S. blockade by asserting control over the Strait of Hormuz, a crucial shipping route responsible for around 20% of global oil supply. Reports of ship attacks and vessel seizures from both sides have intensified geopolitical risks.
With little indication that the waterway will reopen soon, oil prices have surged above $100 per barrel, raising concerns about inflation and potential slowing in global economic growth.
Corporate Earnings in Focus
Alongside geopolitical developments, investors also monitored corporate earnings across Europe.
Shares of SAP jumped more than 5% after the company reported a 17% increase in first-quarter profit, exceeding expectations and driven largely by strong performance in its cloud business.
