Stoxx 600, FTSE, DAX, Iran latest, UK news,

LONDON — European stocks started the new trading week in negative territory on Monday as investors reacted to the latest developments in the U.S.-Iran war, which saw oil prices surge and bonds sell off.

The pan-European Stoxx 600 was 0.7% lower shortly after 8:40 a.m. in London (3:40 a.m. E.T.), with major bourses in London, Frankfurt, Paris and Milan all trading lower.

Energy names were up 0.7% in early trade, as oil prices rose, while media stocks added 1.1%. All other European sectors slipped into the red.

European stocks followed their Asia-Pacific counterparts lower on Monday after U.S. President Donald Trump warned Iran to “get moving, FAST” to agree the terms of a peace deal.

In a post on Truth Social, Trump on Sunday said “the clock is ticking” for Iran and warned there “won’t be anything left” if action was not taken soon, adding that “time is of the essence.”

The President did not elaborate, but the warning comes as negotiations between the U.S. and Iran appear to be deadlocked.

Ryanair shares were 3.3% lower after the budget airline reported an after-tax profit of 2.3 billion euros ($2.7 billion), a 40% increase, for the year ending March. Ryanair’s chief financial officer Neil Sorahan said the carrier has hedged 80% of its summer jet fuel and has prepared for an “Armageddon situation“, amid ongoing uncertainty over oil costs.

Oil prices rose overnight, with international benchmark Brent crude futures for July gaining 1.57% to trade at $110.97 per barrel. U.S. West Texas Intermediate futures for June advanced 1.89% to $107.41 per barrel.

The rise in energy costs is in focus as G7 finance ministers and central bankers meet in Paris later Monday.

The summit will take place amid a sharp sell-off in global bond markets. The yield on 10-year U.S. Treasurys was last sen up more than 1% at 4.6073%, a 15-month high, while 10-year Gilt yields, the benchmark for U.K. government borrowing, reached 5.165% on Monday, despite easing by about 1 basis point. Elsewhere, yields on 10-year German bunds were more than 2 basis points higher at 3.1776%.

— CNBC’s Garrett Downs and Justina Lee contributed to this market report.