European Equities Slide as Mideast Crisis and Oil Price Surge Hit Markets
Market Reactions to Geopolitical Tensions and Economic Data
Impact of U.S.-Iran Conflict on European Markets
May 12 (Reuters) - European shares tumbled on Tuesday, as fading hopes of a U.S.-Iran peace deal pushed oil prices higher and kept investors on edge.
U.S. President Donald Trump called the ceasefire with Iran "on life support" with Tehran rejecting a U.S. proposal to end the conflict and proposing a list of demands that Trump dismissed as "garbage."
Performance of Major European Indices
The pan-European STOXX 600 shed 1.1% to 605.79 points, as of 0703 GMT. Regional bourses also moved lower, with London's FTSE 100 and Germany's DAX down more than 1%.
Oil Prices and the Strait of Hormuz
A closure of the vital Strait of Hormuz has weighed on energy-dependent European markets, keeping them below pre-war levels, as worries remain over the economic impact of the crisis.
Economic Data and Company Movers
Inflation Figures in Germany and the U.S.
Germany's April inflation accelerated slightly to 2.9% in April, official data showed on Tuesday. U.S. inflation data later in the day will also be closely gauged to see the impact of the Iran war.
Notable Stock Movements
Among early movers, Germany's Thyssenkrupp fell 2.4% after the conglomerate cut its 2026 sales outlook.
Shares of Bayer gained 1.5% after the German firm reported a better-than-expected quarterly operating profit.
(Reporting by Twesha Dikshit, Editing by Eileen Soreng)
