European Stocks End Mixed as U.S.-Iran Peace Talks Ease Oil Supply Fears

European equities closed mixed on Friday, May 29, 2026, with the Stoxx 600 slipping less than 0.1% as investors weighed the possibility of a U.S.-Iran détente that could lift crude supply constraints. A fall in oil prices pressured energy shares but eased broader inflation worries, leaving markets directionless. London’s FTSE 100 gained 0.2%, supported by crude-oil-sensitive heavyweights as Brent futures dipped 1.5%. Frankfurt’s DAX declined 0.3%, dragged by automakers exposed to trade uncertainty, while Paris’s CAC 40 was nearly flat. The choppy session reflected a tug-of-war: lower energy costs provided relief to consumers and manufacturers, yet the prospect of revived Iranian exports threatened energy-company profits and signaled fresh geopolitical fluidity. “A potential peace dividend is being priced in selectively,” said a Frankfurt-based strategist. “Investors are reluctant to commit before concrete signals from Washington or Tehran.”