European shares slide as Israel-Iran conflict shows no sign of cooling

European shares opened lower on Tuesday as the air war between Iran and Israel entered its fifth day, raising the risk of further unrest and pushing investors to safer assets.

The pan-European STOXX 600 index was down 0.8% at 542.38 points by 0710 GMT. It had snapped a five-session losing streak on Monday.

The Israel-Iran conflict extended to a fifth straight day on Tuesday, with U.S. President Donald Trump urging Iranians to evacuate Tehran, citing what he said was the country’s rejection of a deal to curb nuclear weapons development.

Trump had departed early from the Group of Seven summit in Canada but clarified that this it has “nothing to do” with working on a ceasefire leaving investors with no clarity on the conflict.

Oil prices ticked higher following the heightened tensions, before retreating. Energy shares outperformed peers, up 0.3%.

All other sectors were in the red, with telecom firms leading declines at 1.4%. Among stocks, London’s Ashtead was among the top percentage gainers despite forecasting a slowdown in rental revenue growth.