Stoxx 600, FTSE, DAX, Iran latest news, oil price

LONDON — European stocks were lower on Wednesday as traders assessed the Iran ceasefire extension, economic updates and a flurry of corporate earnings.

By 1:52 p.m. in London (8:52 a.m. ET), the pan-European Stoxx 600 was down by 0.2%, paring gains seen earlier in the session. Sectors and major regional bourses traded in broadly negative territory.

German officials halved their economic growth forecasts for 2026, saying they now expected their domestic economy to grow by 0.5% this year. For 2027, the gross domestic product forecast was trimmed from 1.3% to 0.9%.

Citing the conflict in the Middle East and the de facto closure of the Strait of Hormuz, Germany’s Economics Ministry said the country had seen costs for households and businesses rise. Against this backdrop, officials projected that the inflation rate will be 2.7% this year and 2.8% next year.

U.S. President Donald Trump on Tuesday extended the two-week U.S. ceasefire with Iran, saying the extension was warranted due to Tehran’s government being “seriously fractured.”

Trump said the ceasefire, which he earlier had said would end on Wednesday, would continue “until such time as” Iran’s leaders and representatives submit a “unified proposal” to end the war with the U.S. and Israel.

The President’s announcement came after reports that an expected trip by Vice President JD Vance to Pakistan for a second round of peace talks with Iranian officials had been put on hold.

Iranian state news outlet Tasnim also reported that negotiators from Tehran had informed their U.S. counterparts through an intermediary in Pakistan that they would not appear for further talks.

An Iranian diplomat later told the AP news agency that Tehran will not “negotiate under threat.” He said the U.S. must end its blockade as a prerequisite for any further talks.

The diplomat told AP on Wednesday that the US must end its blockade on Iran as prerequisite for any further ceasefire talks in Islamabad. He also accused the U.S of using the ceasefire to build up more forces for possible resumption of military actions against the Islamic Republic.

Market sentiment was kept in check by Trump’s refusal to lift the ongoing U.S. blockade of Iranian ports, with oil prices oscillating as investors tried to assess the situation.

He said in a Truth Social post: “They only say they want [the Strait of Hormuz] closed because I have it totally BLOCKADED (CLOSED!), so they merely want to ‘save face.'”

Trump added that lifting the blockade would mean “there can never be a Deal with Iran, unless we blow up the rest of their Country, their leaders included.”