The pan-European STOXX 600 index was down 0.4% at 611.53 points

European shares dropped on Thursday as renewed shipping concerns in the strategic Strait of Hormuz dampened investor ‌sentiment, while market participants parsed through a wave of corporate earnings reports.

The pan-European STOXX 600 index was down 0.4% at 611.53 points, as of 0853 GMT.

Most of the major markets mirrored this downward trend, with Germany’s DAX and London’s FTSE 100 ​declining 0.6% and 0.8%, respectively.

There was hardly any reprieve in the Middle East war as Iran tightened its ​grip on the Strait of Hormuz, after the U.S. president made what appeared to ⁠be a unilateral announcement on Tuesday that the U.S. would extend the Iran ceasefire.

The developments left markets ​nervous about whether the fragile ceasefire would hold.

The absence of any peace talks between the U.S. and ​Iran has led investors to price in a longer conflict again, along with a more extended closure of the Strait of Hormuz, analysts at Deutsche Bank Research said.

Investors were navigating the high of Europe’s corporate earnings season, ​scrutinizing reports for insights into how the Iran war is affecting businesses.

Many companies struck a cautious tone ​in their results earlier this month, citing higher energy prices, supply-chain disruption and slower growth.

Nestle shares climbed 6.8% on Thursday after the packaged food company maintained full-year organic growth forecast of 3%-4%, saying it had seen “very little impact” so far on global business from the Iran war.

Food and beverages sector gained 1.6%.

Telecom sector led sectoral gains with a 2.2% climb. Nokia stock added 9% to its highest level in 16 years after the company raised ​the growth targets for ​its AI business and ⁠beat first-quarter profit estimates.

Personal and household goods index added 0.6%. L’Oreal shares climbed 8.4%, on track for their best day since 2008, after the French ​cosmetics group posted first-quarter sales that beat analysts’ expectations.

French drugmaker Sanofi advanced 3.7% after ​it reported first-quarter ⁠profit and revenue above market expectations. Healthcare sector edged 0.2% higher.

Energy sector rose 1.1% as Brent crude futures were up more than 1% to over $100 a barrel.

On the flip side, travel and banking stocks traded at the bottom, down ⁠2% each.

Axfood shares ​declined 7.7% after the Swedish food retailer posted first-quarter revenue ​that missed analysts’ expectations.