Geneva: European stocks declined Wednesday as uncertainty surrounding peace talks between the US and Iran prompted investors to exercise caution, just hours before the ceasefire deadline. The pan-European Stoxx 600 index closed down 0.9 percent at 616.03 points.

According to Qatar News Agency, major regional markets also fell, with France's CAC 40 and Britain's FTSE 100 both dropping 1.1 percent. Germany's DAX index declined 0.6 percent. A 3 percent rise in crude oil prices boosted the energy sector, which climbed 0.4 percent.

The aerospace and defense sector index led the decline, falling 4.8%, marking its biggest daily drop since April 2025. Shares of Thales, Europe's largest defense technology group, plunged 6% after its first-quarter sales missed expectations. Shares of aircraft engine makers Safran and Rolls-Royce both fell more than 6.5%.

The healthcare sector also experienced a decline of 2%. Shares of Novo Nordisk, maker of the drug Wijovi, fell 4.2%, while AstraZeneca and GlaxoSmithKline each lost more than 2.5%.