European shares rise as markets weigh Middle East conflict
European markets rose 0.3% on Tuesday as investors assessed the impact of Middle East tensions on energy supplies. Gains were led by energy stocks and Puig.
European equity markets edged higher on Tuesday as investors weighed conflicting developments regarding the conflict in the Middle East. The pan-European STOXX 600 index rose 0.3% to 578.45 points, recovering slightly after hitting its lowest level since November 2025 during the previous session. While energy stocks tracked the upward movement of oil prices, persistent concerns regarding a potential energy shock limited broader market gains. Global markets found some support following comments from the United States regarding a delay in military action. President Donald Trump indicated that positive discussions were taking place, though officials in Iran dismissed the claims. > "Tehran rejected the statements as worn-out psychological operations." The ongoing closure of the Strait of Hormuz remains a primary concern for European investors, as the route handles approximately 20% of global oil trade. Europe’s heavy reliance on this passage for energy supplies has heightened fears of significant inflation driven by rising fuel costs. In corporate news, SAP SE saw its shares fall by 2.2%. The decline followed a move by JPMorgan Chase & Co. to downgrade the Germany-based software giant from an overweight to a neutral rating. Conversely, Puig Brands S.A. experienced a significant 16% jump in its share price. The Spain-headquartered beauty group confirmed it is in preliminary merger discussions with The Estée Lauder Companies Inc.. Market participants are now shifting their focus toward the release of flash PMI readings for the euro zone, which are expected to provide further clarity on the region's economic health amidst the current geopolitical instability.
