European stock markets experienced a slight decline on Tuesday as traders closely monitored developments in the Middle East and Ukraine, influenced by renewed fluctuations in the crude oil market. Shortly after 8:30 a.m. London time (3:30 a.m. Eastern Time), the pan-European STOXX 600 index was down 0.2%. Sector performance was mixed in early trading. The UK's FTSE 100 index rose 0.6%, led by gains in mining stocks. In contrast, major European markets such as Paris, Frankfurt, and Milan all trended lower. The pullback in European equities on Tuesday followed a broad rally across major European markets on Monday: Germany's DAX index closed up 2.01%, France's CAC 40 index gained 1.76%, and Italy's FTSE MIB index advanced 1.43%. UK markets were closed on Monday for the Spring Bank Holiday. On Monday, the STOXX 600 index closed 1.04% higher, reaching its highest closing level in over ten months and fully recovering all losses incurred since the outbreak of conflict in the Middle East on February 28. In the early hours of Tuesday, U.S. Central Command conducted what it described as a "defensive" strike in southern Iran. U.S. Secretary of State Rubio, currently visiting India, stated that the Strait of Hormuz must ultimately be reopened "by any means necessary." Despite former President Trump's earlier post on TruthSocial suggesting that a peace agreement was within reach and that negotiations were "progressing well," hostilities have evidently escalated. The uncertain situation led to volatility in the crude oil market during early trading: the international benchmark Brent crude rose 3.1% to $99.14 per barrel, while WTI futures for the U.S. market—which was closed on Monday for Memorial Day and resumed trading on Tuesday—fell 4.2% to $92.48 per barrel. In corporate news: Ferrari's stock plummeted over 6% on Tuesday following the unveiling of its first all-electric model, the Ferrari Luce.
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