European stock markets opened in negative territory on Thursday as traders remain cautious about the prospects of a peace deal to end the ongoing Iran war.

The FTSE 100 in the U.K. is seen down 0.9%, while Germany's DAX and France's CAC 40 are also trading lower.

The decline reflects growing pessimism about a swift resolution to the conflict, which has been a persistent drag on investor confidence.

Recent reports have highlighted the challenges in reaching a diplomatic agreement, with no clear timeline for a ceasefire in sight.

The broader Stoxx 600 index, which tracks a wide range of European equities, is also in negative territory.

Analysts suggest that the market's reaction is a continuation of the uncertainty that has weighed on European equities in recent sessions.