(Il Sole 24 Ore Radiocor) - Milano, 12 mag - European share prices were lower at midday, as hopes for a swift resolution to the US-Iran conflict continued to fade following comments from US president Donald Trump.

Markets on the continent are retreating after Monday's mostly positive session, with the president stating that the regional truce is on "life support" and rejecting Tehran's latest counterproposal as "unacceptable." These developments have pushed oil prices higher and renewed investor fears regarding inflationary pressures and the impact of the ongoing deadlock on global economic growth.

Adding to the cautious sentiment is the political situation in the UK, where prime minister Keir Starmer is working to avert a leadership challenge.

On the macroeconomic front, while Germany's ZEW economic sentiment improved more than expected to -10.2 points in May, the current situation assessment worsened.

Meanwhile, Italy reported a 0.7% monthly increase in industrial output for March, with calendar-adjusted production up 1.5% year on year.

At 0935 GMT, London's FTSE 100 was down 0.58% at 10,209.94 points while in Frankfurt the DAX was 0.83% lower at 24,153.14 points and in Paris the CAC 40 fell 0.59% to 8,008.99 points. Milan's FTSE MIB slumped 0.79% to 49,272.50 points while in Madrid the IBEX 35 was 0.73% lower at.

17,722.30 points.

(RADIOCOR) 12-05-26 11:46:29 (0333) 5 NNNN