European stocks mixed as U.S.-Iran tensions lift oil prices
European stock markets traded mixed on Tuesday as investors assessed renewed military clashes between the United States and Iran, while oil prices rebounded amid concerns over potential disruptions to global energy supplies.
The pan-European STOXX 600 index remained largely unchanged in early trading. Germany’s DAX fell 0.3%, France’s CAC 40 declined 0.4%, while the United Kingdom’s FTSE 100 rose 0.5%, News.az reports, citing Xinhua.
Market sentiment was influenced by renewed hostilities between Washington and Tehran. According to reports, U.S. forces carried out what officials described as defensive strikes in southern Iran, targeting two vessels of the Islamic Revolutionary Guard Corps that were allegedly attempting to deploy mines in the Strait of Hormuz. Iran subsequently launched missiles at U.S. aircraft, prompting further American strikes against missile launchers near Bandar Abbas.
The escalation weakened investor expectations for a near-term peace agreement between the two countries. Recent reports had suggested that Washington and Tehran were close to reaching a deal to end their nearly three-month conflict. U.S. President Donald Trump said negotiations were progressing positively but warned that fighting could resume and intensify if no agreement is achieved.
Oil prices moved higher following the latest developments. Brent crude, the global benchmark, rose 2.4% to $98.39 per barrel after falling below the $100 mark earlier in the week on optimism surrounding diplomatic negotiations and the possible reopening of the Strait of Hormuz.
Despite recent fluctuations, Brent crude remains significantly above pre-conflict levels of around $70 per barrel, raising concerns that higher energy costs could fuel inflationary pressures in major economies.
European energy companies benefited from the increase in oil prices, with shares of major producers including Eni, Repsol and TotalEnergies posting gains.
Meanwhile, shares of Ferrari fell more than 5% in Milan after the luxury automaker unveiled its first fully electric vehicle, prompting a cautious reaction from investors.
By Faig Mahmudov
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