European Shares Flat as Oil Climbs on Iran-US Tensions

European shares remained little changed as caution over intensifying Iran-US tensions outweighed positive earnings reports. The pan-European STOXX 600 index stood flat at 641.83 points by 08:24 GMT, with most sectors in the red, @AJEnglish reported. Oil prices rose to $85 a barrel as Tehran effectively restricted access to the Strait of Hormuz.

Investors reviewed quarterly results against the backdrop of higher energy costs. Michael Metcalfe, head of macro strategy at State Street, said the market environment had turned more defensive due to renewed geopolitical risk. The index later registered at 641.01 after posting its sharpest weekly loss since April, according to Reuters data.

Separately, an Israeli military court sentenced a soldier to five years in prison for espionage on behalf of Iran during the June 2025 war. The conviction followed a joint probe by military police, Israeli police and the Shin Bet intelligence agency. An unidentified drone crashed inside the Grand Faw Port project in Iraq’s southern Basra province, causing no casualties and limited damage.

In western Gaza City, two people were injured in an Israeli air strike. Amnesty International called for at least three Israeli attacks on southern Lebanon in early March to be investigated as war crimes. Those strikes destroyed civilian homes and killed 24 people, including 12 children, the organization said.