09.03.2026 21:40
European stock markets started the week with losses, facing selling pressure due to rising tensions in the Middle East and a sudden increase in oil prices. The price of Brent crude oil exceeding 100 dollars triggered fluctuations in European stock markets.
European stock markets started the week with losses due to the selling pressure created by escalating tensions in the Middle East and a sharp rise in oil prices.
Global markets were shaken as oil prices surpassed the $110 mark for the first time since 2022. The price of Brent crude oil gained nearly 8% to reach the $100 threshold again, while West Texas Intermediate (WTI) crude oil futures rose 5% to $95.81.
CLOSURE OF THE STRAIT OF HORMUZ TRIGGERED
This dramatic rise in energy prices was triggered by major producers such as Kuwait, Iran, and the United Arab Emirates (UAE) cutting production following the closure of the Strait of Hormuz.
This turmoil in energy markets was also reflected in European stock markets, with the benchmark index Stoxx Europe 600 closing down 0.63% at 594.92 points.
Stock markets on the continent, which started the day with panic selling, managed to recover some of their losses towards the end of the day with intervention signals. While a wave of selling dominated all sectors outside the energy sector, the rise in bond yields fueled inflation concerns.
EUROPEAN STOCK MARKETS SHAKEN
In the UK, the FTSE 100 index decreased by 0.34% to 10,249.52, in Italy, the FTSE MIB 30 index fell by 0.29% to 44,024.96, and in France, the CAC 40 index dropped by 0.98% to close at 7,915.36 points.
In Germany, the DAX 40 index lost 0.77% to 23,409.37 points. The euro/dollar exchange rate was down 0.31% at 1.158 as of 20:42 GMT.
ENERGY COMPANIES' SHARES ROSE
French Economy Minister Roland Lescure stated that the G7 countries have not yet made a final decision on releasing national oil reserves but are ready to use "all available tools, including reserve usage," to stabilize the market. Following this announcement, Brent crude fell back below $100, while the selling pressure in European stock markets eased somewhat.
The selling pressure in European stock markets was particularly concentrated in the aviation and mining sectors. British mining company Anglo American lost 3.2%, while aerospace and defense company Rolls-Royce dropped 2%. Shares of German airline Lufthansa Group fell by 6.14%.
Contrary to the general downward trend in the market, shares of energy companies benefiting from high oil prices closed the day with gains. BP in London rose by 2.3%, Shell in Amsterdam gained 2.5%, while Italian Eni and Austrian OMV also provided returns to their investors.
Shares of German Siemens Energy finished the day down 0.7% after recent rapid gains led to profit-taking.
BOND YIELDS INCREASED
Concerns that conflicts in the Middle East will increase energy costs and trigger inflation led to rising government bond yields across Europe.
In the UK, 10-year bond yields rose by 3 basis points to 4.66%, while 2-year bonds, reflecting short-term borrowing costs, reached 4%. In Germany, 2-year bond yields stabilized at 2.33%.
"ENERGY CRISIS INFLATION WARNING"
Neil Atkinson, former Head of Oil Industry and Markets at the International Energy Agency, warned that if the situation in energy supply does not improve in the short term, we could face a "disruptive and unprecedented energy crisis."
Analysts also pointed out that if oil prices remain above $100, it could increase inflation risk and trigger a global recession.