European Shares Subdued As US And Iran Exchange Renewed Fire

(RTTNews) - European stocks were flat to slightly lower on Monday as investors weighed the latest developments in the Middle East and monitored oil prices movements.

Brent crude futures jumped more than 3 percent toward $94 a barrel after the United States and Iran exchanged fire over the weekend, and Israeli troops captured the strategic site of Beaufort Castle in southern Lebanon in the deepest incursion into the country in more than a quarter-century.

Prime Minister Benjamin Netanyahu described the capture of the strategic fortress a "decisive shift" in Israel's campaign against Hezbollah.

In economic news, U.K. house prices declined for the first time this year amid high uncertainty over the developments in the Middle East and its impact on inflation and market interest rates, data from Nationwide Building Society showed.

House prices dropped 0.6 percent month-on-month in May, in contrast to the 0.4 percent rise in the prior month. This was the first monthly drop so far this year and also came in weaker than forecast of 0.1 percent fall.

On a yearly basis, house price growth eased notably to 1.7 percent from 3.0 percent in the previous month.

The pan-European STOXX 600 was down 0.3 percent at 624.36 after closing marginally higher on Friday.

The German DAX and France's CAC 40 were marginally higher while the U.K.'s FTSE 100 slipped 0.2 percent.

Sirius Real Estate shares rose about 1 percent in London. The real estate investment trust reported a 4.9 percent rise in profit before tax for the year to 31 March 2026.

EasyJet soared 12 percent on takeover interest. The budget airline called a potential £3bn bid by a U.S. investment group "highly opportunistic", adding any deal would face substantial hurdles.

Precision engineering group Hunting fell 1.2 percent on news that its chief executive Jim Johnson will retire by mid-2027 after more than three decades at the firm.