European stock markets opened lower on Monday as Washington rejected Tehran’s peace proposal, bringing the Middle East conflict to a geopolitical deadlock.
In Paris, the CAC 40 lost 0.64% to 8,060.60 points by 07:46 GMT. In Frankfurt, the DAX fell by 0.19%, while in London, the FTSE 100 rose by 0.15%.
The EuroStoxx 50 index dropped by 0.19%, the FTSEurofirst 300 by 0.02%, and the Stoxx 600 by 0.04%.
Despite a calm weekend in the Middle East, attempts by the markets to rebound were hindered by recent statements on peace negotiations to end the conflict in Iran, leading to a geopolitical stalemate.
US President Donald Trump called Iran’s response to the US peace proposal “totally unacceptable” on Sunday night. Iranian media reported that Iran’s response focused on safety navigation in the Strait of Hormuz and demanded an end to hostilities on all fronts, especially in Lebanon.
Tehran rejected the latest US proposal, stating that accepting it would mean “submitting to Donald Trump’s excessive demands,” according to Iranian official media.
Market focus now shifts to President Trump’s visit to China this week, with investors hoping that Beijing will influence Iran towards resolving the conflict and reopening the Strait of Hormuz.
In terms of stocks, TKMS lost nearly 2% after initially opening with gains of 3%, while German shipbuilder Compass Group raised its profit forecast for 2026, pushing its stock up by 3%.
(Reporting by Coralie Lamarque; Editing by Augustin Turpin)
