European stock markets are expected to start lower after sentiment shifts as hopes for a faster resolution to tensions between the United States and Iran fade. Multiple outlets point to weakening expectations for a near-term U.S.-Iran peace deal, which is dampening investor risk appetite. The initial market reaction is described as negative, with European equities projected to retreat at the open. The reporting focuses on how changes in expectations around diplomatic developments are influencing trading rather than on company-specific factors or broader economic releases. In this context, investors appear to be reducing exposure to riskier assets while waiting for clearer signals regarding the likelihood and timeline of any agreement. Overall, the story is driven by perceptions of geopolitical progress, with European markets reflecting the more cautious outlook for resolving the U.S.-Iran conflict.