FX.co ★ European Stocks Close Lower

European stocks finished notably lower on Monday, reversing strong early-session gains after fresh setbacks to a potential US–Iran agreement darkened the outlook for global energy supplies. The Euro STOXX 50 shed 0.5% to close at 6,023, while the STOXX Europe 600 declined 0.9% to 620. Official Iranian media reported that Tehran would suspend talks with Washington and prolong the blockade of the Strait of Hormuz in response to Israeli attacks on Lebanon. The news sent energy prices sharply higher and pushed up Eurozone sovereign bond yields, weighing on growth prospects in the absence of a deal to restore tanker traffic. Bank and insurance heavyweight Intesa Sanpaolo and Allianz each fell 1.8% amid the rise in yields, while Airbus, Safran, and Siemens Energy retreated on the back of increased energy costs. By contrast, SAP jumped 8%, tracking gains in US software peers after Nvidia announced plans to manufacture chips for personal computers.