European defense stocks advanced on Wednesday as persistent geopolitical uncertainties, including the potential for US military action against Iran, bolstered demand for the sector. Positive financial results from BAE Systems also contributed to the upward momentum in share prices. Scope Markets Chief Market Analyst Joshua Mahony noted in a report that "market concerns over Iran have resurfaced as the latest round of negotiations failed to yield positive outcomes." A Goldman Sachs basket of European defense spending-related stocks climbed as much as 3.8% during the session and has gained 19% year-to-date. The index had declined as much as 2.6% on Tuesday ahead of talks in Geneva. Thales shares rose 4.6%, while Leonardo, Dassault Aviation, and Theon increased by 4.4%, 3.7%, and 3.6%, respectively.