European Markets Close Weak As Rising Oil Prices, U.S.-Iran Concerns Weigh

(RTTNews) - European stocks closed weak on Tuesday, weighed down by Middle East concerns and higher oil prices. Political uncertainty in the UK weighed as well on sentiment.

U.S. President Donald Trump said the fragile ceasefire between Washington and Tehran was on "massive life support," raising fresh doubts over the chances of a lasting truce. Brent crude futures climbed to $108.45 a barrel, gaining nearly 4.5%.

In the UK, more than 70 Labour MPs have reportedly called for Prime Minister Keir Starmer's departure following weak local election results.

The pan European Stoxx 600 fell 1.01%. Germany's DAX tumbled 1.62% and France's CAC 40 closed down by 0.95% and the U.K.'s FTSE 100 edged down 0.04%. Switzerland's SMI closed 0.14% up.

Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Greece, Iceland, Ireland, Netherlands, Poland, Portugal, Spain, Sweden and Türkiye closed notably lower.

Denmark edged down marginally, while Norway and Russia ended on positive note.

In the UK market, Vodafone Group ended down by 7% after the telecommunications operator lost clients in its key German market last quarter.

3i Group closed lower by 4.6%. Llodys Banking Group, St. James's Place, Marks & Spencer and Barratt Redrow lost 4.1%-4.4%.

Segro, Barclays Group, Melrose Industries, Next, Natwest Group, Persimmon, Diploma, JD Sports Fashion, Rolls-Royce Holdings, IAG, Standard Life, Babcock International, Endeavour Mining, ICG and Anglo American Plc ended lower by 2%-3.5%.

Intertek Group climbed nearly 6.5%. British American Tobacco and Compass Group moved up 5.82% and 5.76%, respectively. Imperial Brands, LSEG, Smith & Nephew, GSK, Haleon, Unilever, Coca-Cola HBC, Convatec Group, Shell, BP, Intercontinental Hotels Group, Pearson and Reckitt Benckiser also ended with strong gains.

In the German market, Munich RE fell 6% after saying it has investments of as much as €2.5 billion ($2.9 billion) in private credit.

Infineon, Zalando and Siemens Energy lost 5%-6%. Siemens Energy fell despite hiking its FY26 outlook.

Daimler Truck Holding and RWE lost 2.65% and 2.25%, respectively.

MTU Aero Engines, Rheinmetall, Siemens, Volkswagen, Brenntag, SAP, Deutsche Bank, Hannover RE and Vonovia also ended notably lower.

Bayer moved up 3.7% after reporting stronger first-quarter earnings, underpinned by a robust performance in its crop science unit.

Scout24 climbed 3.1% and Qiagen gained 2.3%. Symrise moved up 1.7%, while Fresenius Medical Care, Beiersdorf and Siemens Healthineers closed up by 1%-1.1%.

Steelmaker Salzgitter moved up sharply after lifting its fiscal 2026 earnings forecast after reporting turnaround results for the first quarter.

Technology group Jenoptik rallied 10.5% after reporting a 74% jump in its Q1 order intake.

In the French market, STMicroelectronics, Societe Generale, Schneider Electric, ArcelorMittal, BNP Paribas, Capgemini, Legrand, Saint-Gobain and Stellantis lost 2.4%-4.2%. Hermes International, Teleperformance, Airbus, Renault, Carrefour and Publicis Group also ended notably lower.

TotalEnergies, Danone, L'Oreal and Eurofins Scientific gained 1%-1.8%.

In economic news, final data from Destatis showed Germany's consumer price inflation accelerated to the highest since late 2023 in April as energy prices surged due to geopolitical tensions.

Consumer price inflation rose to 2.9% in April from 2.7% in March, in line with the estimate published on April 29.

Germany's ZEW Indicator of Economic Sentiment rose by seven points to -10.2 in May, recovering from an over three-year low of -17.2 in April and surpassing market expectations of -19.8, a report from the Centre for European Economic Research (ZEW) showed.

Meanwhile, the current economic situation index fell to -77.8, its lowest level since December 2025 and below the expected -77.5.

The ZEW Indicator of Economic Sentiment for the Euro Area rose by 11.3 points to -9.1 in May, beating market expectations of -20. The assessment of the current situation also improved, with the index rising 1.6 points to -41.4, while inflation expectations dropped 13.7 points to 65.3.

A report from British Retail Consortium showed UK retail sales decreased by 3.4% year-on-year on a like-for-like basis in April, sharply missing expectations for a 0.8% increase and reversing the 3.1% growth recorded in March.

The latest figure marked the first contraction in retail activity since November 2024, highlighting a notable deterioration in consumer demand.