{"id":60932,"date":"2025-06-17T05:43:14","date_gmt":"2025-06-17T05:43:14","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/06\/17\/european-shares-seen-lower-as-israel-iran-tensions-escalate\/"},"modified":"2025-06-17T05:43:14","modified_gmt":"2025-06-17T05:43:14","slug":"european-shares-seen-lower-as-israel-iran-tensions-escalate","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/06\/17\/european-shares-seen-lower-as-israel-iran-tensions-escalate\/","title":{"rendered":"European Shares Seen Lower As Israel-Iran Tensions Escalate"},"content":{"rendered":"
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European stocks may drift lower on Tuesday as the ongoing conflict between Iran and Israel took a dire turn, with significant casualties reported on both sides following days of strikes and counterstrikes between the two.<\/p>\n

In light of escalating tensions, multiple countries, including India, the United States, Russia and the United Kingdom, have issued travel advisories for their citizens in the region.<\/p>\n

Israeli PM Netanyahu compared Iran’s nuclear program to cancer, vowing it must be “cut out.”<\/p>\n

He said Israel will destroy Iran’s nuclear, missile, and terror infrastructure, with U.S. support and hinted the Iranian regime could collapse under pressure.<\/p>\n

G7 leaders meeting in Canada on Monday affirmed, “Israel has a right to defend itself.” <\/p>\n

The joint statement added, “Iran can never have a nuclear weapon,” and urged that resolving the crisis should lead to wider calm across the Middle East, including “a ceasefire in Gaza.”<\/p>\n

Iran launched a fresh wave of missiles toward Israel early in the morning, prompting the Israel Defense Forces (IDF) to issue a nationwide alert. <\/p>\n

Traders also look for signs of progress on trade deals after the U.S. and Japan failed to react a trade deal at the G7 summit. <\/p>\n

The U.S. and the U.K. have announced a deal on the sidelines of the summit, but the issue of steel and aluminum remains unresolved. <\/p>\n

U.S. President Donald Trump’s 90-day pause on “reciprocal tariffs” ends early next month, posing a risk to global economic stability. <\/p>\n

Markets also look ahead to monetary policy decisions from the Federal Reserve and the Bank of England this week for direction. <\/p>\n

Earlier today, the Bank of Japan kept interest rates steady and decided to decelerate the pace of its balance sheet drawdown next year.<\/p>\n

On the data front, trading later in the day may be impacted by reaction to a batch of U.S. economic data, including reports on retail sales and industrial production.<\/p>\n

Asian markets<\/span> were broadly lower after Trump urged Iranians to evacuate Tehran, citing what he said was the country’s rejection of a deal to curb nuclear weapons development.<\/p>\n

The dollar index traded with mild losses and gold edged up slightly while oil prices rose nearly 1 percent on concerns about disruption to oil supply. <\/p>\n

U.S. stocks rose sharply overnight amid hopes that the escalating conflict between Israel and Iran would remain contained.<\/p>\n

The tech-heavy Nasdaq Composite surged 1.5 percent, the S&P 500 climbed 0.9 percent and the Dow rose 0.8 percent after Iran reportedly called on U.S. President Trump to force a ceasefire in the four-day-old aerial war and the Israeli military claimed its campaign has eliminated high-value targets.<\/p>\n

European stocks recovered from an early slide to end higher on Monday amid optimism that the Israel-Iran conflict would have limited economic impact beyond the Middle East.<\/p>\n

The pan-European STOXX 600 edged up by 0.4 percent. The German DAX and France’s CAC 40 both gained around 0.8 percent while the U.K.’s FTSE 100 added 0.3 percent. <\/p>\n<\/p>\n

Market Analysis<\/p>\n<\/div>\n