European stock markets fall, concern about escalating Iran situation pushes up oil prices.

European stock markets fell on Thursday, while oil prices rose and US President Trump threatened to increase military pressure on Iran. The Stoxx Europe 600 Index closed down 1.1% in London, while Brent crude oil prices increased. Energy stocks outperformed, while mining and technology stocks lagged behind. Trump warned Iran to take seriously the agreement to end the war in a post on social media. Axios previously reported that the US is preparing various options, including sending ground troops and launching massive bombing campaigns. Tehran had previously publicly rejected US overtures, but the White House insists that peaceful negotiations are still ongoing. The European benchmark stock index has erased its gains for the year, as many European industries rely on Middle Eastern energy, causing a greater impact on the region's stock market than in the US. "With time, the buffer will become smaller," said Wolf von Rotberg, stock strategist at Bank J Safra Sarasin. "If energy costs remain high for weeks, it will put increasing pressure on European manufacturing growth." According to data from Goldman Sachs trading desks, trend-following funds have sold around $68 billion worth of European stock index futures positions in the past month, putting them in a net short position. On the individual stock front, Boliden fell by 20% after the company announced that one of its zinc mines can only operate at 30% capacity starting from the second quarter. Payment company Edenred SE's stock price fell by 17% after Italy's competition authority launched an investigation into the company's possible abuse of its dominant market position. Next Plc rose by 4.2%, with the clothing retailer announcing annual profits slightly higher than the revised guidance given in January.