European shares tepid as markets weigh US-Iran deadlock

European shares were muted on Monday, as stalled U.S.-Iran peace negotiations ‌pushed oil prices higher and weighed on risk appetite.

The pan-European STOXX 600 was flat at 611.67 points, as of 0703 GMT. Regional bourses ‌moved in different directions, with London's FTSE 100 adding 0.2%, while France's ‌CAC 40 dipped 0.5%. U.S. President Donald Trump rejected Iran's response to a U.S. peace proposal, calling it "totally unacceptable." Tehran proposed ending the war on all fronts, ⁠including Lebanon, ​along with compensation ⁠for war damage and claimed sovereignty over the Strait of Hormuz, Iranian state TV ⁠said.

The war has shuttered the Strait of Hormuz, a vital waterway for ​a fifth of global oil and liquefied natural gas flows, ⁠with soaring oil prices adding to concerns over the conflict's impact on inflation and ⁠growth. Energy-dependent ​Europe remains vulnerable, with markets still trading below pre-war levels.

Among early movers, UK's Compass Group gained 3.8% after the world's largest ⁠caterer raised its full-year profit outlook. Shares of Delivery Hero rose 3.7% after ⁠Dutch technology investor ⁠Prosus sold a 5% stake in the German food-delivery group to activist investor Aspex Management for roughly 335 ‌million euros ($393 ‌million).

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