European equities were little changed on Friday, with the STOXX 600 up 0.06% at 650.79 points at 0705 GMT, as investors navigated elevated oil prices and rising global bond yields.
The pan-European benchmark remains on track for a second consecutive weekly decline, driven by persistent pressure in global bond markets. U.S. Treasury yields resumed their upward trajectory following a brief stabilization after a Treasury intervention on Wednesday, while Brent crude oil reached a one-month peak of $94.71 before profit-taking emerged.
U.S. Treasury Secretary Scott Bessent indicated the government could expand Treasury buyback programs and suggested potential fiscal consolidation measures. The softer U.S. dollar provided support to gold prices, which benefited from the broader risk-off tone.
Geopolitical tensions in the Gulf continued to weigh on sentiment, with a diplomatic deadlock and reduced optimism over the full reopening of the Strait of Hormuz contributing to higher oil prices. Concerns over sustained inflationary pressures have grown as energy costs remain elevated.
Bessent also reiterated President Donald Trump’s pledge of economic measures against Iran, stating that the U.S. would impose "the toughest sanctions in history" on the country, further tightening the pressure on global energy markets.
