European shares open steady as Middle East conflict drags on

European shares were little changed on Tuesday as investors assessed the economic damage from a prolonged Middle East conflict.

The pan-European benchmark STOXX 600 was flat at 598.11 points by 0807 GMT, hovering over more than two-month lows.

Defense stocks weighed heavily on the index with a 0.8% fall while utilities, often traded as bond proxies, rose 0.7%.

Energy companies such as Shell continued to climb with a 1% rise as crude prices remain north of $100 per barrel.

War in the Middle East showed no signs of slowing down with Iran launching fresh attacks on the United Arab Emirates. Investors looked ahead to the European Central Bank policy meeting due on Friday.

Though the ECB is expected to hold rates at this meeting, the accompanying statements will be scrutinized for the future policy path.

Among other movers, Springer Nature advanced 9% after the German publisher’s 2026 outlook came in better than expected.