European Stocks Extend Losses
2026-05-12 07:40
By
Joana Taborda
1 min. read
Stocks in Europe traded lower on Tuesday, with the STOXX 50 falling about 1% to mark a fourth consecutive session of losses and the STOXX 600 also down roughly 1%, hovering near one-week lows, as hopes for a peace deal between the US and Iran faded.
US President Trump said the ongoing ceasefire was “on life support” after Tehran delivered what he described as an “unacceptable” response to Washington’s proposal to end the conflict.
Oil prices rose again in response, adding to concerns over a renewed spike in inflation.
Meanwhile, investors also monitored political turmoil in the UK, where pressure on Prime Minister Keir Starmer to resign continued to build.
Most sectors traded in negative territory.
Siemens Energy fell 1.8% despite raising its outlook while Munich Re tumbled more than 5% on concerns over losses linked to the Iran conflict.
Lloyds dropped 3.3% and Prosus slid 6.6%.
On the upside, Bayer jumped 4% after reporting higher operating profit, while BP gained 1.3%.