A woman walks past models of Iranian missiles along Valiasr Square in Tehran, April 6, 2026.
Atta Kenare | Afp | Getty Images
LONDON — European stocks ended slightly lower on Thursday as investors assessed strong UK GDP data and euro zone inflation data for March.
Markets also continued to monitor progress in peace negotiations between the United States and Iran.
The pan-European Stoxx 600 The index ended the session down less than 0.1%, reversing morning gains, with regional shares and major exchanges mixed.
The British economy has exceeded expectations with growth of 0.5% in February, against a forecast of only 0.1%, according to official data published Thursday.
However, the outbreak of war in Iran at the end of February is expected to derail the UK’s growth prospects.
The war also had a significant impact on euro zone inflation data, which showed prices rose faster than expected in March to 2.6%, compared to 2.5% initially estimated.
In company news, shares in EasyJet fell on Thursday after warning that the war in Iran and rising fuel prices were weighing on customer bookings.
The airline said it incurred around £25 million ($34 million) in additional fuel costs in the first half due to the US-Iran war. She expects airline costs to remain tied to volatile fuel prices over the coming months.
London-listed EasyJet shares fell as much as 8.7% in morning trading, before paring losses to close Thursday’s session down almost 5%.
American President Donald Trump said in an interview broadcast Wednesday that the conflict was “very close to the end”, fueling market optimism that peace talks can be resumed and a solution found.
Trump said later Thursday that Israel and Lebanon had agreed to a 10-day ceasefireafter officials from the two countries met in Washington, DC
The Associated Press, citing regional officials, reported Wednesday that the United States and Iran had reached an “agreement in principle” to extend their fragile ceasefire by two weeks to allow for more diplomacy.
But a senior U.S. official told CNBC that the United States “has not formally agreed to an extension of the ceasefire.”
“There is continued engagement between the United States and Iran to reach an agreement,” added the official, who spoke on condition of anonymity to discuss the administration’s internal plans.
Overnight, Japan’s Nikkei 225 index hit a record high amid a broader rally in Asian marketstracking Wall Street’s gains Wednesday as hopes grew for a U.S.-Iran deal.
In the United States, both S&P500 And Nasdaq Composite hit cool peaks before noon Thursday, rising about 0.3% and 0.5% respectively, while the Dow Jones Industrial Average rose 0.2%.
