European Stocks Hold Steady as Hormuz Crisis Keeps Oil Elevated

European equity markets traded in a narrow range on Friday, as investors weighed persistent geopolitical tensions in the Middle East against the absence of meaningful progress toward a resolution. The muted performance comes despite elevated oil prices, which continue to reflect ongoing supply concerns.

As of 04:02 ET (08:02 GMT), the pan-European Stoxx 600 index was largely unchanged, with Germany’s DAX and France’s CAC 40 also trading flat. The UK’s FTSE 100 edged up 0.4%, supported in part by strength in energy-linked stocks.

Market sentiment remained cautious following comments from U.S. President Donald Trump, who announced a delay in potential airstrikes on Iranian energy infrastructure until April 6. The extension, which Trump said was requested by Tehran, has been framed as an opportunity for continued diplomatic engagement. However, Iranian officials have denied that any formal negotiations are taking place, underscoring the lack of clarity surrounding the situation.

The decision follows an earlier ultimatum issued by Washington, warning of strikes on Iranian power facilities unless Tehran moved to reopen the Strait of Hormuz within 48 hours. Despite the deadline, the critical waterway remains effectively closed to tanker traffic.

The continued disruption of the Strait of Hormuz—through which roughly one-fifth of global oil shipments pass—has intensified pressure on the global economy. The blockage has raised concerns over supply shortages, higher energy costs, and a renewed surge in inflation, particularly for economies heavily dependent on energy imports.

There were few indications that a breakthrough was imminent, with hostilities between Iran and Israel reportedly continuing, including fresh missile exchanges on Friday. The prolonged conflict, which began in late February, continues to weigh heavily on global markets.

Attention is also turning to upcoming discussions among Group of Seven diplomats in France, where efforts to coordinate an international response to the Strait of Hormuz crisis are expected to take center stage. Calls from the White House for global assistance in reopening the route have so far met limited support.

Oil prices remained elevated amid the ongoing uncertainty. Brent crude futures for May delivery rose 1.2% to $109.25 per barrel, maintaining levels well above those seen prior to the outbreak of the conflict, despite some pullback earlier in the week.

Overall, European markets remain in a holding pattern, with investors balancing geopolitical risks against economic implications, particularly as energy prices continue to exert upward pressure on inflation and corporate costs.