European stock indexes retreated on Monday as a 60-day truce between the United States and Iran expired and President Donald Trump declared he would claim the Strait of Hormuz as US territory, heightening geopolitical tensions. The FTSE 100 closed down 0.3% in London, while the CAC 40 fell 0.7% in Paris and the DAX dropped 0.4% in Frankfurt.
Asian markets had earlier posted gains, with the Nikkei 225 rising 0.7% after Japan's economy grew at a 1.1% annual pace in the second quarter. The Hang Seng and Shanghai Composite also advanced. Oil prices remained elevated; Brent crude traded near $89 a barrel by Monday afternoon.
In the UK, the jobless rate fell to 4.9% in the three months to June, though house prices dropped 2.0% month-on-month in August. In the US, retail sales fell unexpectedly in July. Gold held firm above $4,400 an ounce.