European Stocks Decline Amid Concerns Over Iran Ceasefire Renewal

Global Markets Shaken by Trump's Comments on Iran Ceasefire

European stocks took a hit on Monday as hopes for an end to the Iran war were dashed by President Donald Trump's comments that a ceasefire extension was "highly unlikely." The Stoxx Europe 600 Index retreated 0.8% at the close, with a basket of airline stocks down 2.9% as Brent crude traded at $95 per barrel.

Cyclical shares, including autos, banks, and industrials, were among the biggest laggards. However, the energy sector outperformed, bucking the overall trend. The downturn in European equities comes as the region's businesses continue to grapple with the impact of higher energy prices.

The latest development in the Iran conflict has left investors on edge, and European equities are yet to recoup all the losses since the start of the Middle East conflict. Traders are closely watching a flurry of corporate earnings for insights into how higher energy prices have affected the region's businesses.

| Stock Index | Quarter 1 2026 Performance | | --- | --- | | Stoxx Europe 600 Index | -0.8% | | Brent Crude | -2.9% |

Investor optimism was shaken anew on Monday as Trump said he wouldn't extend the two-week ceasefire unless an agreement was reached. The US had seized an Iranian ship in the Gulf of Oman, while Iran had fired on a number of vessels after re-imposing its own blockade of the Strait of Hormuz.

In individual stocks, Loomis AB fell 5% after Goldman Sachs analysts downgraded the Swedish cash handling company to neutral, saying good growth and profit are mostly priced in. Global Gate Asset Management's chief investment strategist, Patrik Lang, noted that markets will ultimately look through the noise and refocus on the broader outlook.