European Stocks Swing on Iran Nuclear Tensions as Geopolitical Fears Shake Markets

European stock markets ended Thursday on a shaky but slightly positive note as investors reacted to fresh geopolitical tension surrounding Iran’s nuclear program. The pan-European Stoxx 600 index managed a modest gain after a turbulent session marked by sharp swings between losses and recovery, reflecting growing uncertainty in global markets.

At the center of investor concern was a report that Iran’s Supreme Leader had ordered that near-weapons-grade uranium must remain inside the country. The move raised fears that already fragile peace negotiations with the United States could stall further, adding pressure to an already tense geopolitical environment and influencing risk sentiment across global equities.

Despite the uncertainty, most major European indices closed in the green. Germany’s DAX, France’s CAC 40, Italy’s FTSE MIB, and the UK’s FTSE 100 all posted modest gains after mid-session recoveries. However, traders remained cautious as oil prices climbed, with Brent crude and West Texas Intermediate both rising on renewed supply-risk concerns linked to Middle East instability.

Corporate performance across Europe reflected a mixed picture. Satellite operator Eutelsat surged sharply, fueled by investor optimism ahead of SpaceX’s anticipated IPO, while rivals like SES and OHB also posted gains. In contrast, companies such as BT Group and Ubisoft struggled, weighed down by weaker earnings reports and operational losses, highlighting uneven corporate momentum across sectors.

Meanwhile, economic data added to the cautious tone. Flash PMI figures from the UK and France showed a slowdown in business activity, with France recording its steepest drop in over five years. Combined with rising energy prices and geopolitical uncertainty, analysts say markets may remain volatile in the near term as investors balance inflation risks, economic slowdown signals, and global political developments.