Turbulent Markets: How Iran-Israel Conflict Shakes European Shares

European shares experienced a downturn as the Iran-Israel air war persisted into its fifth day, heightening the risk of further destabilization and prompting investors to flock to safer assets.

By 0710 GMT, the pan-European STOXX 600 index declined 0.8% to 542.38 points, snapping back from a brief recovery on Monday. U.S. President Donald Trump urged Iranians to evacuate Tehran due to their rejection of nuclear weapon development restrictions, further exacerbating the tensions.

Although Trump left the Group of Seven summit early, he assured that it was unrelated to negotiating a ceasefire, leaving the market uneasy. Amid heightened unrest, oil prices initially spiked before retreating, with energy stocks up by 0.3%; however, telecommunications stocks led the broader market decline at 1.4%. Despite the volatile environment, London's Ashtead saw gains, hinting at resilience even as rental revenue growth is projected to slow.

(With inputs from agencies.)