Europe midday: Shares slide into the red amid Iran peace talk confusion

(Sharecast News) - European shares turned red at midday as conflicting messages emerged from Iran and the US over a possible peace deal.

The pan-regional Stoxx 600 index was down 0.28% to 621.56 at 1203 BST with all major bourses following suit.

Tehran and Washington on Wednesday were evaluating proposals to end the conflict which started on February 27, sending shares surging and hammering crude oil prices.

However, early optimism was tempered when the US president said a deal was not finalised and threatened to resume military strikes if it did not comply.

"If they don't agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before," the president wrote on social media, although in typical confusing fashion he said talks were "very good" and a deal "very possible".

Iranian state media reported that officials were simply reviewing the US proposal and considering a response via Pakistani mediators. Ebrahim Rezaei, the spokesperson of the Iranian parliament's national security and foreign policy commission, said the proposal to end the war was merely an "American wish list" and "not a reality".

Oil prices were below the $100 mark - but only just - with Brent crude currently sitting at $99 a barrel.

"The headlines have not flipped yet this morning - at the time of writing, the major headline is still that the US and Iran 'weigh potential deal'," said Swissquote analyst Ipek Ozkardeskaya.

"US crude briefly traded below $90 yesterday on the news, and Brent below $97. Considering that the price was flirting with the $115 level just two days ago, seeing levels below the psychologically important $100 mark probably got investors ahead of themselves."

"Given the chaotic diplomacy, and given how the US lost control of the situation - and given the earlier unfounded announcements of progress - I would like to say: 'I will clap when Iran confirms'. Because the longer this drags on, the greater the risk of oil shortages and sharper spikes in oil prices.

"And a 180-degree turn in the situation is just one headline away. Just one headline."

On the economics front Norway's central bank raised rates, while Sweden decided to hold until policy makers could assess the impact of the war on inflation.

In another deluge of corporate earnings and endless trading updates, Zealand Pharma topped the Stoxx with a 15% gain despite reporting a first quarter loss.

Drinks maker Campari slumped after full-year guidance underwhelmed investors. The Italian firm said it expected underlying sales growth of around 3%, in line with that achieved in 2025.

German specialty chemicals company Lanxess fell sharply after first quarter results.

Reporting by Frank Prenesti for Sharecast.com