European stocks muted as US-Iran peace talks called off

European shares dipped 0.1% on Friday as U.S.-Iran negotiations were called off, offsetting gains in energy and defense stocks, amid uncertainty over a lasting truce.

European shares were muted on Friday as investors shunned riskier ‌assets after U.S.-Iran negotiations to end the Middle conflict were called off.

The pan-European STOXX 600 index dipped 0.1% by 0711 GMT, with losses in ‌miners and utilities offsetting gains in energy and defense stocks. European stocks ‌stalled as Switzerland said U.S. talks with Iranian negotiators would not take place on Friday, as Vice President JD Vance dropped plans to travel to the ⁠country, adding ​to uncertainty ⁠whether a lasting truce can be found.

The stocks had rallied to record highs ⁠earlier this week, driven by signs of progress in the U.S.-Iran peace ​talks and a gradual reopening of the Strait of Hormuz, a ⁠vital artery for global energy supplies. On the day, Entain climbed 1.7% after Reuters reported ⁠the ​Ladbrokes-owner has begun exploring options for its joint venture in Central and Eastern Europe, including a possible sale.

ASML dipped 1.8% ⁠after Bloomberg reported U.S. Commerce Secretary Howard Lutnick told the company that Washington is ⁠concerned that ⁠one of its top chipmaking machines may have found its way to China in violation of ‌U.S.-led export restrictions.