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European Stocks Close Sharply Lower in Wednesday Trading; Oil Prices Spike as US-Iran War Reignites

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The European stock markets closed sharply lower in Wednesday trading after fighting between the US and Iran resumed, causing oil prices to spike more than 7%.

US President Donald Trump said Wednesday the US will probably bomb Iran again after declaring Tuesday that the ceasefire was over following Iran's attacks on commercial vessels in the Strait of Hormuz, which is apparently closed to sea traffic again.

The Stoxx Europe dropped 1.7%, Germany's DAX shed 2.3%, the FTSE 100 fell 1.6%, France's CAC lost 2.3%, and the Swiss Market Index was 1.4% lower.

And in corporate news, AstraZeneca has signed a deal worth up to $2.1 billion with Sino Biopharmaceutical's unit, Chia Tai Tianqing Pharmaceutical, for the development, manufacturing and commercialization of Chia Tai Tianqing's chronic respiratory disease drug candidate TQC3721, Sino Biopharmaceutical said Wednesday.

The deal stipulates that Chia Tai Tianqing will receive an upfront payment of $200 million to grant AstraZeneca an exclusive license to develop, manufacture and commercialize TQC3721 outside China, Sino said.

Meanwhile, Astrazeneca and Daiichi Sankyo are in advanced talks with England's drug pricing regulator to make the breast cancer medicine Enhertu available to certain patients, Bloomberg reported Wednesday, citing people familiar with the negotiations.

According to the report, Enhertu can extend the lives of some breast cancer patients by around six months.

In an emailed statement to, an AstraZeneca spokesperson said discussions "are ongoing with NHS England and NICE to identify a solution to support access to Enhertu for HER2-low metastatic breast cancer patients in England, Wales and Northern Ireland."

Daiichi Sankyo did not immediately respond to' request for comment.

Shares of the British pharmaceutical major declined 1.1% in London.

BHP employees at Port Hedland in Western Australia plan to walk off the job next week in a strike over pay and work conditions, news outlets reported.

Ongoing talks between BHP and unions representing hundreds of employees have come to a standstill, the public Australian Broadcasting Corporation reported. Between 150 and 200 workers are expected to walk off the job for eight hours on July 16 in a dispute threatening $120 million in revenue from the facility, the report said.

BHP said it has recently offered a new contract that rewards 1,800 workers.

"Our focus remains on keeping our people safe, maintaining productive operations and reaching a fair, competitive and reasonable agreement with our people," BHP said in a statement. "Every Australian benefits from a strong iron ore sector. We are eager to keep negotiating constructively for a fair deal, while making sure we can keep operations running safely."

Shares of the mining company lost 4.3% in London.

Banco Santander overhauled its Asia-Pacific corporate and investment banking business, removing its top banker in Beijing, tightening employee oversight and cutting staff perks as part of a cost-cutting drive, the Financial Times reported Wednesday.

According to the report, the lender is shifting its regional growth focus toward Southeast Asia, Japan and South Korea while continuing to operate in Hong Kong and mainland China. Santander is expected to appoint a new China head in the coming weeks, the report added.

Banco Santander did not immediately respond to requests for comment from.

Shares of the Spanish bank fell 5.1% in Madrid.

GSK agreed to expand its exclusive strategic collaboration with Sino Biopharmaceutical's Chia Tai Tianqing Pharmaceutical Group subsidiary to include rights to commercialize two GSK respiratory therapies in mainland China, Sino said in a Wednesday filing.

Under the deal, Chia Tai Tianqing Pharmaceutical will secure the commercialization rights to GSK's Trelegy Ellipta and Anoro Ellipta in mainland China, according to the filing. Financial details were not disclosed.

Shares of GSK dropped 1.7% in London.

Sanofi offered commitments to address competition concerns over a communication campaign that has possibly disparaged a competing flu vaccine, the European Commission said Wednesday.

The regulatory body is now collecting third-party feedback on the proposed commitments to decide if they satisfy the antitrust case, the commission said.

Shares of the French pharmaceutical company were off 0.7% in Paris.

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