European stock markets opened in negative territory on Tuesday, with the Stoxx 600 and major indices like the FTSE 100 and DAX all trading lower.
The decline reflects growing pessimism about a swift resolution to the ongoing U.S.-Iran conflict, which has rekindled fears of broader regional instability.
5% at the open, while German and French indices are also trading in negative territory.
The FTSE 100 is seen down 0.5% at the open, while German and French indices are also trading in negative territory.
The broader market reaction underscores the sensitivity of European equities to geopolitical risk, particularly in the energy and industrial sectors.
The renewed concerns come amid conflicting reports on diplomatic efforts to de-escalate tensions.
Analysts note that the lack of progress has led to a repricing of risk in global markets, with investors shifting capital toward safer assets., with no clear path to a near-term resolution.