European Equities Slide as Middle East Tensions Persist and Hormuz Remains Closed

European equity markets closed lower on Friday, driven by deepening concerns over the geopolitical standoff between the United States and Iran. The continued closure of the Strait of Hormuz has maintained upward pressure on energy costs, signaling to investors that the conflict may be more protracted than initially anticipated. Adding to the strategic instability, reports indicate a significant depletion of U.S. military stockpiles. The U.S. military is said to require up to six years to replenish the volume of missiles consumed during the conflict with Iran, suggesting a long-term logistical challenge for Washington. Broad market performance was negative across the region. The pan-European STOXX 600 Index declined 0.6% to 610.65. Regional benchmarks followed suit, with the U.K.'s FTSE 100 and the French CAC 40 both sliding 0.8%, while Germany's DAX saw a marginal dip of 0.1%. Corporate volatility was pronounced in the consumer and industrial sectors. Swedish appliance maker Electrolux saw its shares plummet 25% after reporting an unexpected first-quarter loss attributed to higher U.S. tariff costs. Similarly, British packaging group Mondi fell 8.7% following a sharp decline in Q1 profits, and Evotec dropped 4.8% after the resignation of CFO Paul Hitchin. Despite the gloom, some firms posted gains. German software giant SAP surged 4.7% after beating first-quarter profit estimates, while grocer J Sainsbury rose 1.3% on the announcement of a share buyback program valued at up to £300 million.