European shares open flat after new US strikes on Iran

European shares opened flat on Tuesday after fresh U.S. strikes in southern Iran revived worries about the conflict and the outlook for peace talks.

Reuters reported that the STOXX 600 was unchanged at 631.92 points at 0707 GMT, reflecting a cautious start to trading even as investors digested the latest military action.

AP reported that the U.S. military carried out what it described as self-defense strikes in southern Iran, including on missile launch sites and boats placing mines. U.S. Central Command said the action was intended to protect U.S. troops from threats posed by Iranian forces.

The market reaction was not limited to equities. Reuters said Brent crude rose about 2% as traders assessed the risk that the attacks could deepen tensions in the Middle East and further complicate diplomatic efforts.

The latest strikes follow a rapid sequence of developments that has kept markets on edge. AP first reported the U.S. military action on Monday, and Reuters later reported the European market response early Tuesday.

Investors are now watching whether the confrontation widens and whether officials in Tehran or Washington provide more detail on the scope and consequences of the strikes.