European equity markets started Thursday’s session with a mixed performance, as major regional indices showed only modest moves while investors remained cautious. Renewed tensions in the Middle East and a recovery in oil prices tempered optimism following the previous day’s market rally.
At 07:08 GMT, the pan-European Stoxx 600 declined 0.2%, while Germany’s DAX also slipped 0.2% and France’s CAC 40 dropped 0.3%. In contrast, the UK’s FTSE 100 moved higher, gaining 0.2% in early trading.
Trump warns of further action as ceasefire uncertainty persists
Market sentiment weakened after U.S. President Donald Trump said U.S. military forces would remain positioned around Iran until a “real agreement” is fully complied with, warning that further conflict could follow if the terms are violated.
His remarks come as doubts grow over the stability of the fragile ceasefire between the United States and Iran. Iranian officials have suggested that negotiations may be “unreasonable” under current circumstances, even as the country plans to send a delegation to Pakistan for talks.
At the same time, continued Israeli military strikes in Lebanon—including new raids that destroyed residential buildings—have raised additional concerns about whether the truce can hold, increasing fears of a wider escalation across the region.
Oil rebounds amid ongoing supply concerns
Oil prices moved higher on Thursday after sharp declines in the previous session, as uncertainty around shipping through the Strait of Hormuz continued to weigh on the global supply outlook.
Brent crude climbed to roughly $97 per barrel, while U.S. West Texas Intermediate traded near similar levels. Prices were supported by limited and tightly regulated vessel traffic through the strategically important waterway.
Although a tentative ceasefire is in place, maritime activity remains restricted, with Iran retaining substantial control over transit in the area, keeping concerns about potential supply disruptions elevated.
Gold eases as oil rebound fuels inflation worries
Gold prices slipped slightly, with spot gold holding steady while U.S. gold futures declined by around 0.6%. The drop followed the rebound in oil prices, which renewed concerns about inflation.
The precious metal had recorded modest gains during the previous session as investors sought safe-haven assets. However, a firmer U.S. dollar and rising bond yields limited further upward momentum.
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