(Corrects the day to Tuesday in paragraph 1)
July 14 (Reuters) – European shares opened lower on Tuesday as escalating U.S.-Iran tensions spooked investors, who scrutinized quarterly earnings from companies such as oil major BP and telecom equipment maker Ericsson to gauge the impact of the conflict on corporate health.
The pan-European STOXX 600 index slipped 0.4% to 638.17 points by 0810 GMT, with travel and leisure leading sectoral decliners with a 2% drop. Energy price-sensitive airlines Air France and Lufthansa fell about 2% each.
Brent crude prices shot up 2.6% to $85 a barrel after the U.S. carried out a third straight night of strikes against Iran and President Donald Trump announced a blockade of Iranian shipping and a 20% fee on cargo transiting the Strait of Hormuz.
The move would be the latest complication that companies and investors will have to consider as they gauge the health of the economy and corporate outlook for the rest of the year, just weeks after a Middle East agreement seemed to end hostilities.
Ericsson tanked 8% after the Swedish telecom equipment maker’s quarterly sales slightly missed estimates and it warned of rising component costs.
Energy stocks led sectoral gains, up 1.4% on higher oil prices.
London’s BP benefited from the surge in oil prices earlier this year during the conflict with Iran. Shares of the oil company rose 3% after it said its oil trading results are expected to be slightly higher in the second quarter from the previous quarter.
Evotec plummeted 30% after the German drug discovery firm cut its 2026 outlook, citing delays to large strategic partnerships that are now expected to contribute from 2027.
(Reporting by Tharuniyaa Lakshmi and Johann M Cherian in Bengaluru; Editing by Rashmi Aich)
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