Europe close: Stocks pare gains as oil prices continue to fall

15th Jun 2026 16:18

(Sharecast News) - European shares pared gains by the close on Monday after Israel said its troops would remain in Lebanon, casting doubt on a US-Iran agreement intended to end their four-month war.

The pan-European Stoxx 600 rose 0.25% to 634.81.

Germany's DAX gained 1.09% to 24,903.42 and France's CAC 40 advanced 0.4% to 8,384.01, while London's FTSE 100 fell 0.39% to 10,430.62 .

In commodities, Brent crude futures were last down 4.63% on ICE at $83.29 per barrel, and the NYMEX quote for West Texas Intermediate slid 4.9% to $80.72.

Chris Beauchamp, chief market analyst at IG, said: "The US-Iran deal was going to be the only game in town for markets today after the US president announced it last night."

"Markets have been dancing to Trump's tune ever since he was re-elected, and especially since his tariff announcements of last year," he added.

"This has only intensified with the Iran war, but once again it looks like he may succeed in skirting a global meltdown, but only just.

"The news has been the signal for rampant buying, unleashing billions in equity purchases that have been waiting for this moment."

Pakistan prime minister Shehbaz Sharif said on Sunday that the US and Iran had agreed to an immediate and permanent end to military operations on all fronts, including in Lebanon.

Pakistan has acted as a mediator between Washington and Tehran, with a formal signing ceremony scheduled for Friday, 19 June, in Switzerland.

US president Donald Trump confirmed that an agreement had been reached.

"I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade," he wrote on social media.

However, two far-right members of Israel's cabinet said they were not bound by the agreement, while defence minister Israel Katz said Israeli forces would remain indefinitely in security zones in Lebanon, Syria and Gaza.

Israel has annexed large areas of Lebanon following missile attacks by the Iran-backed Hezbollah militia.

Tehran has insisted that Lebanon be included in any peace agreement, raising uncertainty over whether the broader deal can hold.

The reopening of the Strait of Hormuz would reduce pressure on energy prices and ease concerns that central banks will need to raise interest rates to contain inflation.

However, analysts warned that removing mines, clearing hundreds of trapped tankers and restoring shipping and oil production infrastructure damaged during the war could take weeks.

Patrick Munnelly, market strategy partner at TickMill, said London had started the week with a relief rally before the shine faded rapidly.

"The FTSE 100 jumped to 10,569.50 in early trade after Iran and the US reached an agreement to end the Middle East conflict and reopen the Strait of Hormuz; however, sentiment reversed sharply as the UK benchmark trades near 1% lower heading into the close," he said.

"The market message was clean: peace is good for risk, but not equally good for every sector."

Euro area industrial production rises less than expected

On the economic front, eurozone industrial production rose less than expected in April, while the region unexpectedly recorded a trade deficit.

Eurostat said output increased 0.1% month-on-month, following a revised 0.4% rise in March and below expectations for growth of 0.3%.

Production of intermediate goods rose 0.8%, durable consumer goods increased 1.0% and non-durable consumer goods advanced 1.7%.

These gains were largely offset by a 0.4% decline in energy output and a 0.5% fall in capital goods production.

The eurozone posted a trade deficit of €1.0bn in April, compared with a €4.9bn surplus in March and expectations for a €7.8bn surplus.

Exports rose 5.0% year-on-year to €255.4bn, while imports increased 9.3% to €256.4bn.

It was only the second monthly deficit in the past year and the third since the first quarter of 2023.

In the UK, asking prices recorded their largest June decline in 14 years as sellers lowered expectations in an increasingly competitive market.

Rightmove said the average price of a newly listed home fell 0.6%, or £2,113, to £376,191, leaving prices 0.5% lower than a year earlier.

June prices have typically risen by around 0.1% over the past decade.

Rightmove attributed the unusual decline to wider economic uncertainty, the timing of the May bank holiday, hot weather and the elevated number of properties available for sale.

Oil majors in the red, travel stocks rally

In equity markets, oil producers including Equinor and Eni fell sharply as crude prices declined.

Defence stocks also weakened on the prospect of peace, while travel groups TUI and Ryanair rallied on expectations of lower fuel costs and reduced geopolitical disruption.

Reporting by Josh White for Sharecast.com.