09.04.202616:00:34UTC+00European Stocks Pull Back

European equities finished sharply lower on Thursday, erasing part of the strong gains from the previous session as renewed tensions around the US–Iran ceasefire undermined expectations for lower near-term energy prices. The Eurozone’s STOXX 50 declined 0.6% to 5,878, while the pan-European STOXX 600 slipped 0.4% to 611.

Iran accused the US of breaching the ceasefire agreement, heightening concerns that the recent de-escalation may prove short-lived and that the current spike in oil and gas prices could persist, particularly as Tehran continues to issue threats against tankers in the Persian Gulf.

Bond yields rebounded, weighing on the banking sector, with Santander, BBVA, and Nordea each losing about 1.5%. Rising natural gas prices also pressured energy-intensive industrial heavyweights, with Airbus and Siemens shedding more than 2%. By contrast, energy producers benefited from the surge in crude prices, with Eni and TotalEnergies gaining more than 3%.