London, July 8 (SANA)European stocks extended losses on Wednesday after U.S. President Donald Trump said the memorandum of understanding between theUnited States and Iranhad ended, adding to renewed concerns over tensions in the Middle East.

CNBC reported that the pan-European STOXX 600 index fell 0.7% to 641.31 points.

Automobile stocks, which are sensitive to higher energy prices, led the decline, falling 1.6%, while banking stocks lost 1.3%.

Shares of Air France and Wizz Air each fell more than 2% as oil prices climbed amid renewed geopolitical tensions, while Lufthansa dropped 4% after Citigroup downgraded the stock to “sell” from “neutral.”

Investors also continued to monitor technology stocks after a volatile start to July following a strong artificial intelligence-driven rally in the previous quarter.

Technology shares were mixed, with chipmaking equipment manufacturer ASML rising 1%, while semiconductor firms Soitec and Aixtron each fell more than 1%.

The market reaction followed Trump’s announcement that the U.S.-Iran memorandum of understanding had expired, heightening investor concerns over renewed geopolitical tensions in the region.F.J./ABD