European stocks close lower as Trump extends Iran strike hiatus and G7 ministers meet

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The USS Tripoli (LHA-7) amphibious assault ship enters the Singapore Straits, amid the U.S.-Israeli conflict with Iran, as seen from Singapore, March 17, 2026.

Edgar Su | Reuters

The sell-off in European stocks continued on Friday after U.S. President Donald Trump extended the ongoing hiatus of attacks on Iran’s energy infrastructure.

The pan-European Stoxx 600 provisionally ended the session 0.9% lower with nearly all sectors in the red. The FTSE 100 closed just below the flatline, while France’s CAC 40 fell 0.9% and Germany’s DAX was 1.3% lower.

European bourses resumed their declines from the previous session, having closed lower on Thursday as investors struggled to decipher mixed messages on the status of Middle East peace talks.

On Thursday evening, President Trump said he would extend a hiatus on attacks on Iran’s energy facilities by 10 days to April 6, to allow more time for negotiations.

“As per Iranian Government request, please let this statement serve to represent that I am pausing the period of Energy Plant destruction,” Trump said in a Truth Social post. “Talks are ongoing and, despite erroneous statements to the contrary by the Fake News Media, and others, they are going very well. Thank you for your attention to this matter!”

The President also claimed Iran had allowed 10 oil tankers to pass through the strait this week as a “present” to the U.S., though Tehran has not publicly commented on the matter.

Elsewhere in Europe, the meeting of G7 foreign ministers in France enters its second day on Friday. The wars in Iran and Ukraine will be top of the agenda, while South Africa, which was supposed to attend as an observing nation, says France withdrew its G7 invitation after the US threatened to boycott.

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G7 foreign ministers meet in France for second day of high-stakes talks

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Asian markets fell overnight, while U.S. stocks were also lower.

In corporate news, drink makers Pernod Ricard and Brown-Forman, which owns whisky brand Jack Daniel’s, have reportedly begun merger discussions, amid a prolonged downturn for the alcohol industry.

Both companies announced statements confirming talks, in a move that would combine the world’s second-largest spirits maker with the ‌largest producer of American whiskey. Pernod shares ended the session 8% higher.

Meanwhile, AstraZeneca closed up 3% after revealing that its experimental lung disease medicine met its target in two late-stage clinical trials.

— CNBC’s Leonie Kidd also contributed to this report.

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