European shares opened mixed on Thursday, with regional indexes remaining largely unchanged as renewed tensions in the Middle East and rising oil prices kept investor sentiment cautious after the previous session's rally.

By 10:08 (Saudi time), the European Stoxx 600 index was down 0.2%, the German DAX index was down 0.2%, and the French CAC 40 index was down 0.3%, while the British FTSE 100 index was up 0.2% in early trading.

Trump warns of further action as doubts grow about a ceasefire.

Morale declined after US President Donald Trump said US military assets would remain deployed around Iran until a genuine agreement is fully complied with, warning of further conflict if the terms are violated.

These statements come amid uncertainty surrounding the fragile ceasefire between the United States and Iran, with Iran indicating that talks may be unreasonable under the current circumstances despite plans to send a delegation to Pakistan for negotiations.

Israel’s continued strikes on Lebanon, including new raids that destroyed residential buildings, have raised further doubts about the durability of the truce and increased fears of a wider regional escalation.

Oil rises amid continued supply concerns

Oil prices rose on Thursday after suffering sharp losses in the previous session, as disruptions in the Strait of Hormuz continued to cloud supply prospects.

Brent crude rose to around $97 a barrel, while U.S. West Texas Intermediate crude traded near similar levels, supported by limited and tightly controlled shipping flows through the key waterway.

Despite the temporary ceasefire, ship traffic remains restricted, with Iran retaining significant control over transit, keeping supply risks high.

Gold falls amid inflation fears

Gold prices dipped slightly, with spot gold remaining unchanged and U.S. gold futures down about 0.6%, weighed down by rising oil prices that have raised inflation concerns.

The metal had made modest gains in the previous session amid safe-haven demand, but a more stable US dollar and higher yields limited further gains.