European markets opened the session in negative territory, weighed down by renewed geopolitical tensions in the Middle East following new threats by U.S. President Donald Trump against Iran. Investors fear a further escalation in the region, with potential consequences for global energy supplies and market stability.
Leading the losses is Milan’s FTSE MIB, down 2.04% at 48,112 points, dragged lower mainly by banking and energy stocks. Paris’ CAC 40 also declined sharply, falling 1.06% to 7,868 points, while Frankfurt’s DAX limited losses to 0.32% at 23,873 points.Weak trading was also seen on Madrid’s IBEX 35 (-0.62%) and the STOXX Europe 600, which slipped 0.60%, reflecting a broader risk-off mood across European markets. London proved more resilient, with the FTSE 100 nearly flat at -0.05%.
In commodities, oil prices surged overnight amid concerns that tensions in the Persian Gulf could intensify further. International benchmark Brent crude futures for July rose 1.57% to $110.97 per barrel, while U.S. West Texas Intermediate futures for June advanced 1.89% to $107.41 per barrel.
The sharp rise in crude prices is fueling fresh concerns over global inflation and the next moves by central banks, at a time when economic growth remains fragile and markets are highly sensitive to geopolitical developments.