European Stocks Open Lower Amid US–Iran Uncertainty
European equities started Tuesday in negative territory as investors reacted to fresh reports suggesting that Donald Trump may reject Iran’s proposal to end the ongoing conflict.
The pan-European Stoxx 600 declined 0.3% in early trading. Germany’s DAX slipped 0.2%, France’s CAC 40 fell 0.3%, and the UK’s FTSE 100 edged down 0.1%.
Trump Pushes Back on Iran Proposal
Reports indicate that Trump is dissatisfied with Iran’s latest proposal, which would involve reopening the Strait of Hormuz while postponing discussions on Tehran’s nuclear program.
The U.S. administration has consistently emphasized eliminating Iran’s nuclear capabilities as a core objective of the conflict. As a result, delaying negotiations on this issue has raised concerns in Washington about the credibility of the proposal.
Peace Talks Face Setbacks
Prospects for renewed diplomacy weakened over the weekend after Trump canceled plans to send negotiators to Pakistan for further talks. Iran’s foreign minister had briefly visited Islamabad before securing support from Vladimir Putin in subsequent discussions.
These developments highlight the ongoing complexity of negotiations, with no clear resolution in sight.
Strait of Hormuz Disruption Drives Oil Prices Higher
Amid the diplomatic stalemate, the Strait of Hormuz remains largely closed to shipping. This key energy corridor—responsible for transporting roughly 20% of global oil supply—has been severely restricted for weeks.
The disruption has pushed Brent crude prices significantly higher, raising fears of a global energy shock and renewed inflationary pressures.
Inflation Concerns and Central Bank Outlook
Rising oil prices have fueled concerns that central banks may need to tighten monetary policy further to combat inflation. This adds another layer of uncertainty for global markets already grappling with geopolitical risks.
Key Stock Movers
In corporate news, shares of BP moved higher after the energy giant reported a sharp increase in first-quarter profits, supported by elevated oil and gas prices.
Norwegian Air Shuttle also gained ground after posting a smaller-than-expected operating loss, helped in part by fuel hedging strategies.
Meanwhile, Novartis shares declined after the company reported weaker-than-expected core operating profit for the first quarter.
