European shares muted as investors weigh US-Iran talks

European stocks were little changed at the open as investors monitored U.S.-Iran negotiations and their potential impact on shipping through the Strait of Hormuz. Energy prices eased while sectoral moves reflected mixed corporate and economic signals across the region.

June 22, 2026

Reuters

European shares muted as investors weigh US-Iran talks

FILE PHOTO: European Union flags flutter outside the European Commission headquarters in Brussels, Belgium April 29, 2026.

Yves Herman/Reuters

European shares were muted at the open on Monday as investors assessed the latest round of U.S.-Iran negotiations for signs of progress toward resuming shipping through the Strait of Hormuz, a critical artery for global oil trade.

Brent Crude prices declined 1.6%, and were trading below $80 per barrel after mediators Qatar and Pakistan said that Washington and Tehran had agreed on a roadmap for a final deal and measures to safeguard shipping through the Strait of Hormuz. Tehran had declared the waterway closed on Sunday, casting doubt on the ceasefire's sustainability.

The pan-European STOXX 600 index .STOXX edged 0.05% higher to 635.92 points by 0711 GMT.

Tech stocks <.SX8P> led sectoral gains, rising 1.2%, with chipmaker Infineon IFXGn.DE and semiconductor equipment maker Aixtron AIXGn.DE gaining 4.5% and 2.3%, respectively, tracking advances in Asian equities.

In M&A activities, shares of budget airline easyJet EZJ.L rose 2.3% after U.S. investment firm Castlelake went public with a £4.74 billion ($6.26 billion) offer.

Danone DANO.PA shares slipped 0.4% after the French food giant said it will acquire Australian company MADE Group for an undisclosed amount.

Among other movers, the UK's defence and engineering group Babcock BAB.L dropped 3.3% following a sharp decline in its annual profit on a £140 million frigate charge.

($1 = 0.7571 pounds)

-Reporting by Utkarsh Hathi and Johann M Cherian in Bengaluru; Editing by Rashmi Aich/Reuters