A woman walks past mockups of Iranian missiles along Valiasr Square in Tehran on April 6, 2026.
Atta Kenare | Afp | Getty Images
LONDON — European stocks finished marginally lower on Thursday, as investors assessed strong U.K. GDP data and Eurozone inflation data for March.
Markets also continued to monitor the progress of peace negotiations between the U.S. and Iran.
The pan-European Stoxx 600 index finished the session down less than 0.1%, reversing morning gains, with regional stocks and major bourses mixed.
The British economy surpassed expectations with 0.5% growth in February, compared to forecasts of just 0.1%, according to official data published Thursday.
However, the outbreak of the Iran war at the end of February is set to derail U.K. growth prospects.
The war also had a significant impact on eurozone inflation data, which showed prices rose faster than expected in March at 2.6%, up from initial estimates of 2.5%.
In corporate news, shares in EasyJet slumped on Thursday after it warned that the Iran war and higher fuel prices are weighing on customer bookings.
The airline said it took on roughly £25 million ($34 million) in additional fuel costs in the first half due to the U.S-Iran war. It expects airline costs to remain tied to volatile fuel prices over the coming months.
EasyJet’s London-listed shares dropped as much as 8.7% in morning trade, before paring losses to close Thursday’s session down almost 5%.
U.S. President Donald Trump said in an interview broadcast Wednesday that the conflict was “very close to over,” fueling market optimism that peace talks could resume and a resolution be found.
Trump later said Thursday that Israel and Lebanon had agreed to a 10-day ceasefire, after officials from the two countries met in Washington, D.C.
The Associated Press, citing regional officials, reported Wednesday that the U.S. and Iran had an “in principle agreement” to extend their fragile two-week ceasefire in order to allow for more diplomacy.
But a senior U.S. official told CNBC that the U.S. “has not formally agreed to an extension of the ceasefire.”
“There is continued engagement between the U.S. and Iran to reach a deal,” added the official, who spoke on condition of anonymity to discuss the administration’s internal plans.
Overnight, Japan’s Nikkei 225 hit a record amid a broader rally in Asia markets, tracking gains on Wall Street on Wednesday as hopes of a U.S.-Iran deal grew.
In the U.S., both the S&P 500 and Nasdaq Composite hit fresh highs ahead of midday trade Thursday, advancing about 0.3% and 0.5%, respectively, as the Dow Jones Industrial Average rose 0.2%.
