European stocks end lower as US-Iran ceasefire deadline nears

European stocks closed lower Tuesday as investors turned cautious ahead of a looming deadline for the ceasefire between the US and Iran, with renewed threats from President Donald Trump adding to the unease.

The pan-European Stoxx 600 was down 0.87% to end at 616.03 points, reversing gains as major regional indexes also moved into negative territory.

Britain’s FTSE 100 lost 1.05% to 10,498.09, while Germany’s DAX dropped 0.60% to 24,270.87

France’s CAC 40 fell 1.14% to 8,235.72, Italy’s FTSE MIB declined 0.63% to 47,903.29 and Spain’s IBEX 35 was down 0.65% to 18,142.6.

Investor sentiment weakened as markets continued to assess the prospects for renewed peace talks between Washington and Tehran, as well as the risk of further military escalation once a two-week ceasefire expires.

Trump said Tuesday that he expects to make a “great deal” with Iran, but struck a combative tone, saying the US military was prepared for action. He repeated threats of overwhelming force if no agreement is reached.

Confusion also persisted on the exact timing of the ceasefire’s expiration. While the truce had initially been expected to end at 0000GMT Tuesday, Trump said Monday it would run until Wednesday evening Washington time.

Associated British Foods fell after reporting weaker first-half earnings and announcing plans to spin off fashion retailer Primark from its food business. The company posted group revenue of £9.47 billion ($12.8 billion) for the six months to Feb. 28, while adjusted operating profit fell 18% year-on-year to £691 million.

Spain’s Puig, meanwhile, rose sharply following reports that Estée Lauder had turned to JPMorgan for €5 billion in financing to support a bid for the Barcelona-based fashion and beauty group.