Strait Tensions Ripple Through European Markets

European shares moved lower on Thursday, with growing concerns over the strategic Strait of Hormuz impacting investor confidence as they assessed a series of corporate earnings reports.

The pan-European STOXX 600 index decreased by 0.2% to 612.98 points, as broad market caution prevailed. Germany's DAX and London's FTSE 100 also saw declines of 0.2% and 0.5%, respectively.

Despite an announcement from U.S. President Donald Trump regarding an extended ceasefire, the market remained uneasy due to Iran's tightening grip on the Strait, questioning the ceasefire's sustainability.

As stocks fell, oil prices surged—with Brent crude climbing over 1% to surpass $100 per barrel—propelling energy stocks up by 0.6%. However, most major sectors ended in the red, except telecommunications, which rose by 1.2%, while banking stocks fell by 1.1%.

Amid peak earnings season, investors scrutinized reports to gauge the Iran conflict's business impact and future outlook. Nestle saw a 6% share rise on maintained growth forecasts, while L'Oreal shares increased by 8% following robust sales growth.

(With inputs from agencies.)