European Shares Edge Lower as US-Iran Tensions Escalate

European equities declined on Thursday, May 28, 2026, as heightened tensions between the United States and Iran prompted risk-off sentiment. The pan-European Stoxx 600 index fell 0.3%, with Germany's DAX losing 0.4% and France's CAC 40 down 0.2%. London's FTSE 100 edged 0.1% lower. Oil prices advanced sharply on Strait of Hormuz supply disruption fears, with Brent crude futures up 2.1% to $78.50 a barrel. The energy sector was the sole gainer, rising 1.5%, while travel and leisure stocks led the declines, dropping 1.2%. "The sudden flare-up has caught markets off guard and forced a repricing of geopolitical risk," said a Frankfurt-based strategist. The U.S. had deployed additional naval assets to the region, and Iran restarted uranium enrichment activities, escalating the standoff.