Middle East Tensions Rattle European Markets: Energy Prices Surge
European shares fell as tensions in the Middle East affected the outlook for a significant deal involving the Strait of Hormuz. The pan-European STOXX 600 dropped 0.4% as crude oil prices rose due to escalating hostilities between Iran and the U.S., impacting various sectors, including airlines and technology.
On Thursday, European shares experienced a decline as tensions in the Middle East heightened concerns about a potential deal involving the strategic Strait of Hormuz, casting shadows over the global economic landscape.
The pan-European STOXX 600 index slipped by 0.4% to 625.83 by 0806 GMT, with major regional markets also trending lower. Crude oil prices spiked over 2.5% to $97 per barrel amid rising hostilities between Iran and the U.S., and Kuwait's defensive responses to missile threats similar to those during March's conflict.
The volatility affected various sectors, with energy-sensitive airlines such as Air France and Lufthansa dipping around 1%. However, technology stocks provided some relief, with French semiconductor supplier Soitec surging 16% after exceeding sales expectations. In contrast, BT saw a 2.5% drop amid discussions of Indian billionaire Sunil Bharti Mittal potentially increasing his stake in the telecom giant to ensure sovereign control over critical infrastructure.
(With inputs from agencies.)
Google News