Traders work on the floor of the New York Stock Exchange during morning trading April 17, 2026 in New York.
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LONDON — European stock markets fell Monday amid fears that a further escalation of tensions between the United States and Iran over the weekend could derail the fragile ceasefire between the two countries.
The pan-European Stoxx 600 closed down 0.9%, with all major regional exchanges and sectors except oil and gas finishing in negative territory.
President Donald Trump said on Sunday that a US Navy The guided missile destroyer had fired on and disabled a Iranian-brand cargo in the Gulf of Oman before Marines boarded and seized the ship.
The seizure is an escalation of the US blockade of the strait and comes after Iran fired on commercial ships trying to transit the sea passage earlier on Sunday.
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Since last week, the United States has imposed a naval blockade on ships entering and leaving Iranian ports. Iran views the ongoing blockade as a violation of the ongoing ceasefire, which it cites as one of the reasons why it to call negotiations expected Monday in Islamabad.
Asset warned On Sunday, he would “bring down every power plant and bridge in Iran” if Tehran did not accept Washington’s conditions to end the conflict. The fragile ceasefire between the two countries will expire this week.
After declaring on Friday that the Strait of Hormuz was reopened to shipping, Iran reversed that decision on Saturday, limiting maritime traffic in this key shipping lane, with state media saying the United States “did not fulfill its obligations”.
The renewed tensions pushed back several European sectors on Monday, notably travel and leisure companies, which had climbed during Friday’s session after Iran declared the reopening of the Strait of Hormuz. European travel and leisure stocks closed down 2.5% on Monday.
German airline Lufthansa was down 3.4%, while the London-listed company EasyJet had fallen by 3.1%. TUIthe mainstay of travel and tourism, lost 3.1%.
In contrast, the region’s oil and gas stocks rose, increasing by 1.5%. Norwegian oil and gas multinationals have led the way, Equinor And Our energy increased by 1% and 3.5% respectively. Elsewhere, P.A. increased by 3%, Total energies added 1.8% and Shell shares rose 2.4%.
Brent crudethe international oil benchmark, recently traded at $95.20 per barrel on Monday, an increase of 5.4%, while the United States West Texas Intermediate futures for May delivery climbed 5.7% to $88.62, as oil prices rebounded after Friday’s retreat.
Elsewhere, UniCredit fell 2.5% after its CEO Andrea Orcel unveiled ambitious projects for a rapprochement between the Italian lender and a long-term target Commerzbank Monday. Commerzbank shares were last up 1.8%.
Asia-Pacific Markets were generally trading higher overnight, but US futures fell early Monday. These declines come after a winning week for Wall Street, with the S&P500 And Nasdaq Composite reaching unprecedented heights last week following a ceasefire between Iran and Lebanon.
There are no earnings or major data releases in Europe on Monday.
— Justina Lee and Fred Imbert of CNBC contributed to this market report.