European equity markets traded without clear direction on Monday as investors weighed renewed geopolitical tensions after U.S. President Donald Trump described Iran’s reply to a U.S.-backed peace proposal as “TOTALLY UNACCEPTABLE.”
By 07:04 GMT, the pan-European Stoxx 600 index was broadly flat. Germany’s DAX edged 0.1% higher, while London’s FTSE 100 advanced 0.4%. France’s CAC 40 underperformed, slipping 0.5%.
Iranian state television reported that Tehran had formally responded to a U.S. framework aimed at ending the conflict that has now lasted for more than two months. According to the reports, Iran’s proposal focused on bringing military operations to an end across all fronts while also seeking compensation for wartime damage.
Tehran also reiterated its control over the Strait of Hormuz, the strategically important shipping corridor through which around 20% of global oil supply passes. The waterway has faced severe disruption during the conflict and is currently subject to blockades from both Iranian and U.S. forces.
Shortly after details of Iran’s response emerged, Trump reacted on social media, saying he did not “like” the proposal. Washington has been pushing for a rapid conclusion to the conflict before entering broader negotiations on key issues, particularly Iran’s nuclear programme.
Oil markets continued to react sharply to the escalating tensions. Brent crude futures, the international benchmark, climbed another 3.4% to $104.69 per barrel, extending gains well beyond pre-conflict levels and fuelling concerns over renewed inflationary pressure globally.
Away from geopolitical developments, investors also remained focused on the ongoing rally in artificial intelligence-linked stocks. Continued enthusiasm surrounding the AI sector has helped U.S. equity markets absorb much of the uncertainty tied to the conflict and reach fresh record highs in recent trading sessions.
Among individual movers, shares in Delivery Hero (TG:DHER) rose more than 5% after Prosus sold a 5% stake in the company to Hong Kong-based investor Aspex in a deal valued at 335 million euros.
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