European markets close lower as oil price surges amid Middle East turmoil
European stocks started the new trading week sharply lower as traders tracked developments in the Middle East and a surge in oil prices.
TL;DR
- European stocks closed sharply lower, with major bourses and most sectors declining.
- Oil prices surged above $110 per barrel, reaching levels not seen since early 2022.
- The energy price increase is linked to production cuts by Middle Eastern oil producers and the closure of the Strait of Hormuz.
- Government bond yields in Europe rose sharply due to inflation concerns driven by the war in Iran and surging oil prices.
- U.S. stocks also plunged, and Asian markets tumbled overnight amid fears of economic slowdown.
- Donald Trump commented on the rise in oil prices, linking it to the destruction of Iran's nuclear threat.