European shares declined on Monday, driven by concerns that a ceasefire between the U.S. and Iran might collapse. This followed Washington’s announcement of seizing an Iranian cargo ship attempting to breach its blockade, with Tehran vowing to retaliate. The pan-European STOXX 600 index fell 1.1% to 619.67 points as of 0855 GMT. France’s CAC and Germany’s DAX also experienced declines of 1% and 1.6%, respectively.
European equities are struggling to recover losses since the war began in late February, lagging behind U.S. counterparts due to elevated oil prices impacting energy-dependent economies. Daniela Hathorn, a senior market analyst at Capital.com, noted that the market pressure stems from renewed uncertainty regarding U.S.-Iran peace talks. Energy shares gained 1.7% as crude prices surged, while travel and leisure sectors fell 2.5%. Airline stocks, including easyJet and Lufthansa, dropped between 3.1% and 4%. Renishaw’s shares rose 6.7% after raising its 2026 revenue and profit forecasts.
