Europe open: Shares fall, oil above $105 as Iran stalemate drags on

(Sharecast News) - European shares opened lower on Friday as optimism around the Iran war ceasefire started to dissipate.

The pan-regional Stoxx 600 index was down 0.53% to 610 at 0819 BST. Germany's DAX fell 0.11%, Italy's MIB was 0.69% lower and France's CAC 40 declined by 0.65%.

Britain's FTSE 100 fell 0.48% despite official data showing retail sales grew an unexpected 0.7% month-on-month in March as motorists stocked up on petrol in response to higher prices due to the Iran War.

Oil prices remained above $100 a barrel with Brent crude up 0.81% to $105.93 as the two way blockade of the Strait of Hormuz continued and no sign of any peace talks between the warring parties on the horizon.

Meanwhile US President Donald Trump said there would be a three week extension to the ceasefire in the war between Israel and Lebanon but also replied "Don't rush me" when asked how long he was willing to wait for a long-term peace deal with Iran.

"The ceasefire is holding but remains fragile. The US Navy reportedly boarded a supertanker carrying Iranian oil in the Indian Ocean, while Donald Trump ordered American forces to shoot boats placing mines in the Strait of Hormuz," said Swissquote analyst Ipek Ozarkdeskaya.

"Iran, frustrated by Trump's blockade and public bashing, appears unwilling to return to the negotiating table. Oil prices are consolidating near the $100 per barrel level. Developed market yields are rising alongside oil prices, fueling inflation expectations, while equities remain hesitant near all-time highs."

In equity news, Tomra Systems slumped as the Norwegian recycling specialist missed first-quarter revenue estimates.

Sweden's Indutrade also fell sharply as earnings fell more than expected, while paper and packaging giant Mondi was down on the back of a significant decline in first quarter core earnings.

On road crane maker HIAB surged as it lifted profit margin guidance.

Reporting by Frank Prenesti for Sharecast.com