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2026.05.2607:29:17UTC+00European Stocks Cautious

European equities traded cautiously on Tuesday, with the STOXX 50 easing 0.2% and the STOXX 600 hovering near unchanged, after both benchmarks had touched pre-war highs in the previous session. Investor sentiment softened amid indications of a setback in US–Iran negotiations and ongoing mixed signals from both sides. Tensions intensified after US and Israeli jets targeted Iranian vessels in the Strait of Hormuz and other locations. US forces characterized the raids as “self-defense” strikes, which came just hours after President Trump suggested that talks with Tehran on a potential interim agreement were making headway. The renewed geopolitical uncertainty pushed oil prices higher once again.

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