European bourses tracked moderately lower midday Tuesday as crude prices rose after US President Donald Trump and Iranian officials overnight mutually ruled out a peace deal.
The Strait of Hormuz, the vital waterway for oil tankers, remains largely closed to traffic.
Front-month North Sea Brent crude-oil futures traded up 3.1%, at $107.45 a barrel in midday action.
Food and oil stocks led modest gains on continental trading floors, while bank, tech and property shares lagged.
Investors also eyed Wall Street futures flashing red amid largely lower closes overnight on Asian exchanges.
In economic news, Germany's economic sentiment index came in at negative 10.2 in May versus negative 17.2 in April, the Centre for European Economic Research reported. "There is cautious hope for a potential recovery in the second half of 2026, provided that the Middle East conflict eases," ZEW said.
The pan-continental Stoxx Europe 600 Index was off 0.7% red% mid-session.
The Stoxx Europe 600 Technology Index was down 1.5%, and the Stoxx 600 Banks Index lost 1.7%.
The Stoxx Europe 600 Oil and Gas Index gained 0.4%, and the Stoxx 600 Europe Food and Beverage Index edged 0.2% higher.
The REITE, a European REIT index, fell 1%.
On the national market indexes, Germany's DAX was down 0.9%, and the FTSE 100 in London lost 0.4%. The CAC 40 in Paris was down 0.5%, and Spain's IBEX 35 eased 0.9%.
Yields on benchmark 10-year German bonds were higher, near 3.09%.
The Euro Stoxx 50 volatility index was up 3.9% at 22.87, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.