U.S. President Donald Trump sits at a table monitoring military operations during Operation Epic Fury against Iran, with U.S. flags visible behind him, in Washington, United States, on March 2, 2026.
The White House via X | Anadolu | Getty Images
LONDON — European stocks bounced back from early losses on Monday to close higher as investors reacted to the latest developments in the U.S.-Iran war, which saw oil prices rise and bonds sell off.
The pan-European Stoxx 600 gained 0.3% on Monday, with major bourses in London, Paris and Frankfurt all finishing in the green.
Energy names gained 2% as oil prices rose, while most other European sectors traded in positive territory.
European stocks bucked the negative trend set by their Asia-Pacific counterparts on Monday after U.S. President Donald Trump warned Iran to «get moving, FAST» to agree the terms of a peace deal.
In a post on Truth Social, Trump on Sunday said «the clock is ticking» for Iran and warned there «won’t be anything left» if action was not taken soon, adding that «time is of the essence.»
The President did not elaborate, but the warning comes as negotiations between the U.S. and Iran appear to be deadlocked.
Ryanair shares rose 5% after the budget airline reported an after-tax profit of 2.3 billion euros ($2.7 billion), a 40% increase, for the year ending March. Ryanair’s chief financial officer Neil Sorahan said the carrier has hedged 80% of its summer jet fuel and has prepared for an «Armageddon situation«, amid ongoing uncertainty over oil costs.
Oil prices rose, with international benchmark Brent crude futures for July gaining 1.53% to trade at $110.93 per barrel. U.S. West Texas Intermediate futures for June advanced 1.4% to $106.90 per barrel.
The rise in energy costs is in focus as G7 finance ministers and central bankers meet in Paris later Monday.
The summit will take place amid a sharp sell-off in global bond markets. The yield on 10-year U.S. Treasurys was last seen up slightly at 4.6%, near a 15-month high, while 10-year Gilt yields, the benchmark for U.K. government borrowing, reached 5.165% on Monday, despite easing by about 1 basis point. Elsewhere, yields on 10-year German bunds were more than 2 basis points higher at 3.1776%.
— CNBC’s Garrett Downs and Justina Lee contributed to this market report.
