11:46 AM EDT, 05/28/2026 (MT Newswires) -- The European stock markets closed lower in Thursday trading as investors' hopes of a potential peace treaty between the US and Iran appear to have waned as the two countries continue to exchange fire.

The Stoxx Europe was down 0.5%, Germany's DAX fell 0.4%, the FTSE 100 dropped 0.7%, France's CAC lost 0.2%, and the Swiss Market Index declined 1%.

Defense stocks tempered the market losses and rallied during trading. BAE Systems, Rolls-Royce, and Melrose Industries were all higher in London, as were Thales, Airbus, and Safran in Paris. Rheinmetall and MTU Aero also rose in Frankfurt.

And in corporate news, BP's former chairman, Albert Manifold, rejected allegations leveled against him during his tenure at the oil and gas exploration giant, CNBC reported Thursday. BP's board on Tuesday announced the removal of Manifold due to "serious concerns" about governance standards, oversight, and conduct.

In a response issued on Thursday, Manifold said that while he does accept the board's decision to remove him as chairman, he did not accept "that lies can be told about me, nor that anyone should be allowed to hide behind anonymity when commenting on my time at bp," the news report said.

"We note the comments of our former chair. We stand by the statement we have made. We have a duty of care to all our employees, particularly those impacted by his behavior," a BP spokesperson said in an e-mailed comment.

Shares of the British oil and gas giant edged 0.2% higher in London.

Deutsche Bank terminated some staff members due to its client relationship with Jeffrey Epstein, Bloomberg reported Thursday, quoting comments by the bank's Chief Executive Christian Sewing at a shareholder meeting in Frankfurt.

"Where appropriate, we have taken personnel measures, this includes ending our employment relationships with certain individuals," Sewing was quoted as saying.

Sewing did not specify which employees were terminated, the report said.

Shares of the German lender declined 0.6% in Frankfurt.

TotalEnergies and Stellantis have renewed and expanded their partnership in Europe to develop and deliver engine oils and lubricants, the companies said Thursday.

Financial details of the renewal and expansion were not disclosed.

The new agreement, originally renewed in 2021 for the Peugeot, Citroen, Opel, DS Automobiles, and Vauxhall brands, now also includes additional Stellantis brands: Fiat, Jeep, Lancia, Alfa Romeo, and Abarth, the companies said.

Shares of TotalEnergies and Stellantis closed marginally lower in Paris.

Ferrari Chief Executive Benedetto Vigna said the company is already receiving orders from new and old customers for its first electric model, Bloomberg reported Thursday.

On Monday, Ferrari unveiled its new all-electric Luce sports car and said it was expanding its lineup with a dedicated electric platform. The luxury sports car maker's shares fell sharply after the announcement, as investors seemed wary of the high price of the car, which was reported by media outlets to start at 550,000 euros ($640,000).

Ferrari didn't immediately respond to a request for comment from MT Newswires.

Ferrari's stock gained 3.6% in Milan.

Sanofi has been granted US Food and Drug Administration priority review for a new drug application for venglustat for the treatment of type 3 Gaucher disease, a rare disorder, the company said Thursday.

The application is backed by data from a phase 3 study in which venglustat met both its primary endpoints and three out of four key secondary endpoints, the drugmaker said.

Shares of Sanofi lost 1.4% in Paris.