The pan-European Stoxx 600 dropped 0.2%, Germany’s DAX declined 1,4%, France’s CAC 40 slipped 0.2%, while the UK’s FTSE 100 shed 0.1%

European stocks were mostly down on Thursday, with benchmarks coming under pressure as a rebound in oil prices and renewed tensions in the Middle East dampened investor sentiment after the previous session’s rally.

The pan-European Stoxx 600 dropped 0.2%, Germany’s DAX declined 1,4% and France’s CAC 40 slipped 0.2%, while the UK’s FTSE 100 shed 0.1%.

Sentiment weakened after U.S. President Donald Trump said American military assets would remain deployed around Iran until a “real agreement” is fully complied with, warning of further conflict if terms are breached.

The comments come as uncertainty surrounds the fragile U.S.-Iran ceasefire, with Iran signalling talks may be “unreasonable” under current conditions despite plans to send a delegation for negotiations.

Ongoing Israeli strikes in the region have further raised doubts over the truce and heightened fears of broader escalation.

Oil prices jumped on Thursday after suffering sharp losses in the previous session, as disruptions in the Strait of Hormuz continued to cloud the supply outlook.

Brent crude has increased 2% to $96.61 a barrel and U.S. crude has added 5% to $99.11, supported by limited and tightly controlled shipping flows through the key waterway.

Despite a tentative ceasefire, vessel movement remains restricted, with Iran maintaining significant control over transit, keeping supply risks elevated.

Gold prices edged higher on Thursday as investors sought safe-haven assets amid renewed Middle East tensions, offsetting pressure from a firmer dollar and rising yields.

Spot gold was up 1.6% to $4,795.91 an ounce, while U.S. Gold Futures for June added 0.9% to $4,820.15/oz.