May 15 (Reuters) – European shares tumbled on Friday as a deadlock in U.S.-Iran negotiations dented risk appetite, rattled energy markets and rekindled concerns over an economic slowdown.
The pan-European STOXX 600 was down 0.8% at 611.27 points, as of 0703 GMT, and on track for a weekly loss, if the current momentum persists.
Regional markets mirrored the move, with Germany’s DAX and France’s CAC 40 down 1% and 0.8%, respectively.
U.S. President Donald Trump said his patience with Iran was running out and that he agreed with China’s Xi Jinping that Tehran must not be allowed to develop nuclear weapons and should re-open the Strait of Hormuz, a key route that typically handles about a fifth of global oil and liquefied natural gas flows.
Oil prices gained more than 1% as the vital passage remained shuttered. Inflation data readings this week have shown that the impact of the Iran war has started showing up in big increases in consumer and producer prices.
European markets, dependent on energy imports, remain vulnerable and have lagged behind global peers that rebounded from March lows.
Among early movers, shares of LVMH dipped 0.8% after the conglomerate agreed to sell fashion brand Marc Jacobs to a joint venture between brand manager WHP Global and apparel company G-III Apparel Group.
Stellantis added 1% after the French-Italian carmaker signed a roughly 1-billion-euro ($1.16 billion) deal with Chinese partner Dongfeng to produce Peugeot- and Jeep-branded vehicles in China.
(Reporting by Twesha Dikshit; Editing by Sherry Jacob-Phillips)
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