European stocks plunge as Iran standoff fuels energy shock and inflation fears before ECB moves

Xi and Trump pushed Hormuz reopening as markets sank

European shares tumbled on Friday as a deadlock in U.S.-Iran talks hit risk appetite, rattled energy markets, and revived slowdown concerns. Trump said his patience with Iran is running out after agreeing with Xi Jinping that Tehran must not obtain nuclear weapons and should reopen the Strait of Hormuz. Global bonds fell and oil rose. U.S. and European inflation prints this week pointed to the Iran war’s effects in consumer and producer prices, boosting expectations of further ECB tightening.