European Stocks Drop 1.2% Amid U.S.-Iran Peace Deal Concerns

European stocks are anticipated to open lower, with the pan-European Stoxx 600 down 1.2% shortly after the opening bell. This decline is attributed to fading expectations for a U.S.-Iran peace deal, as President Trump stated the ceasefire is 'on life support'. Additionally, yields on U.K. government bonds increased, with the benchmark 10-year gilt rising by approximately 10 basis points to 5.099%. The British pound experienced a 0.5% decrease against the U.S. dollar and a 0.3% drop versus the euro, contributing to negative sentiment in the markets.