European stocks were mixed on Monday, as investors cautiously assessed President Donald Trump's weekend comments, in which he described Iran's response to the U.S. peace proposal as totally unacceptable.
By 10:04 a.m., the pan-European STOXX 600 index was virtually unchanged, while Germany’s DAX rose 0.1%, Britain’s FTSE 100 gained 0.4%, and France’s CAC 40 fell 0.5%.
According to Iranian state television, Tehran issued a response to the American plan aimed at ending the conflict that has been ongoing for more than two months, with the response focusing on stopping the fighting on all fronts and demanding compensation for the damages of the war.
Iran also asserted its control over the Strait of Hormuz, the vital shipping lane off its southern coast through which roughly one-fifth of the world's oil production passes. The strait was almost completely closed during the conflict and is currently blockaded by both the United States and Iran.
Just hours after Iran issued its counter-response, Trump expressed his disapproval on social media. The United States had proposed a swift end to the war, followed by detailed negotiations on core issues, particularly Iran's nuclear ambitions.
Oil prices continued their upward trend, significantly exceeding pre-war levels and raising concerns about a wave of inflation in several countries worldwide. Brent crude futures, the global benchmark, rose 3.4% to $104.69 a barrel.
Away from the geopolitical scene, traders continued to follow the ongoing boom in artificial intelligence stocks, as the rising enthusiasm around these stocks helped US markets overcome most of the negative repercussions of the war and set new record highs in recent days.
On the individual stock front, Delivery Hero shares rose by more than 5% after Prosus sold a 5% stake in the company to Hong Kong-based Aspex for €335 million.
