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Europe stocks rebound to stall as U.S-Iran ceasefire comes under strain

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European markets face mixed openings Thursday as a U.S.-Iran ceasefire frays within 24 hours, with Iran’s parliamentary speaker accusing Washington of violations via Israeli strikes on Lebanon and uranium enrichment restrictions. Key indexes show divergence: the UK’s FTSE 100 is set to rise 0.4%, while France’s CAC 40 and Germany’s DAX may dip 0.2% and 0.4%, respectively, reflecting investor uncertainty over escalating tensions. U.S. President Trump vowed to maintain military presence in Iran until full compliance, threatening an unprecedented response to any breach, heightening fears of renewed conflict. Asian markets reacted negatively: Japan’s Nikkei 225 fell 0.77%, South Korea’s Kospi dropped 1.53%, and Kosdaq declined 1.38%, signaling global risk aversion amid geopolitical instability. Wednesday’s 3.7% surge in Europe’s Stoxx 600—led by Antofagasta, Lufthansa, and EasyJet—contrasts Thursday’s caution, underscoring volatility tied to the fragile truce’s rapid deterioration.
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In this articleShares in Europe are poised to open in mixed territory on Thursday, as the fragile truce agreed between the U.S. and Iran already shows signs ofstrain.The U.K's FTSE 100 is set to open 0.4% higher, according to IG futures data, while France's Cac 40 is on course to open 0.2% lower. Germany's DAX 0.4% is expected to open lower. Late on Wednesday, Iran's parliamentary speaker Mohammed Bagher Ghalibaf accused the U.S. of violating the ceasefire less than 24 hours after it was agreed. Ghalibaf highlighted Israel's continued attacks on Lebanon, a drone's entry into Iranian airspace and the denial of the Islamic Republic's right to enrich uranium./U.S. military forces will remain deployed in and around Iran until Tehran fully complies with the "real agreement," President Donald Trump said Wednesday, warning that any breach would trigger a military response larger than anything seen before.Asian markets traded lower following the dispute. South Korea's Kospi was down 1.53%, while the small-cap Kosdaq declined 1.38%.Japan's Nikkei 225 fell by 0.77%, while the Topix was 0.78% lower.Thursday's moves follow a particularly strong session in Europe on Wednesday, when the pan-European Stoxx 600 index finished the day 3.7% higher. Antofagasta, Lufthansa, and Easyjet were among the biggest risers on the day, each gaining around 10%.Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2026 Versant Media, LLC.

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