Europe midday: Shares flat as UK's Starmer quits; Iran-US agree roadmap

(Sharecast News) - European shares hovered at the flatline by midday on Monday as Israeli attacks on Lebanon continued to threaten the fragile truce between Iran and the US while traders also eyed the latest UK political turmoil following the resignation of Prime Minister Keir Starmer.

The pan-regional Stoxx 600 index was down 0.02% to 635 at 1158 BST with major markets mixed.

Iran's foreign minister said progress had been made after the first day of talks between officials from Washington and Tehran ended in Switzerland, even as US President Donald Trump threatened to resume attacks and the Iranians said they were closing the Strait of Hormuz again.

A joint statement from mediators Qatar and Pakistan said the `US and Iran agreed a roadmap for a final deal in two months. Technical talks between lower-ranked officials would go on for the rest of the week, according to the statement.

Oil prices were lower on the news, with Brent Crude down 1.68% to $79.22 while West Texas Intermediate fell 0.61% to $75.39.

In the UK, Starmer made a brief resignation statement outside 10 Downing Street, paving the way for newly re-elected MP Andy Burnham to either take over or fight a leadership battle against former health minister Wes Streeting.

In equity news, shares in easyJet rose as the budget carrier rejected a third bid from private equity outfit Castlelake.

Reporting by Frank Prenesti for Sharecast.com