Europe open: Shares fall as US strikes cloud peace outlook

26th May 2026 07:46

(Sharecast News) - European shares edged lower and oil prices jumped at the open on Tuesday as renewed fighting between the US Iran clouded the outlook for peace.

The pan-regional Stoxx 600 index was down 0.04% to 631 by 0849 BST with most major markets lower except for the UK's mining heavy FTSE 100, which rose 0.75%.

US forces fired on Iranian vessels on Monday, claiming they were laying mines in the vital Strait of Hormuz, despite assertions from President Donald Trump that talks with Tehran were making progress.

Brent crude rose 3.2% to $99 a barrel on the news.

An Iranian foreign ministry spokesperson contradicted Trump's claims, saying "no one can claim we are close to reaching an agreement" until there was clarity around Tehran's nuclear programme.

Geopolitical tensions also rose as Russia told the US to evacuate its diplomats and citizens from Kyiv, amid a wave of drone and missile strike on civilians in the capital.

In equity news, shares in Ferrari fell 6% as the sports car brand launched its first electric vehicle.

Kingfisher shares were up as the DIY chain owner held guidance despite a fall in first quarter sales.

Reporting by Frank Prenesti for Sharecast.com