European markets slide: Investor uncertainty persists following Trump’s remarks

Exactly one month since the outbreak of the conflict in the Middle East, European stock markets have opened in negative territory once again. Despite U.S. President Donald Trump extending the ultimatum to Iran until April 6, significant doubts remain regarding the progress of negotiations. Concern and caution continue to prevail among investors, fueled by uncertainty over the potential duration of the conflict and its long-term impact on the global economy.

Market indices: a detailed breakdown

Shortly after the opening bell, the pan-European STOXX Europe 600 index recorded a 0.8% decline. This downward trend hit all major hubs: London’s FTSE 100 shed 0.35%, Paris’s CAC 40 dropped 0.5%, and Frankfurt’s DAX opened 0.9% lower. Similar losses were observed in Brussels, where the BEL20 fell by 1.01%, and in Madrid, with the IBEX 35 sliding by 0.97%.

The energy market and the Strait of Hormuz

Natural gas and oil remain the primary focus. Following Trump’s White House address, crude oil prices saw a fresh surge on Friday. The U.S. President's decision to grant Iran a ten-day extension to reopen the strategic Strait of Hormuz failed to reassure markets regarding global supply concerns. Brent Crude for May delivery rose by 1.8%, reaching $109.93 per barrel after temporarily breaking the $110 threshold, while West Texas Intermediate (WTI) settled at $96.01, up 1.6%.

The persistent volatility in energy prices reflects fears that the diplomatic truce may be only temporary. As long as the Strait of Hormuz remains at the heart of tensions between Washington and Tehran, the risk premium on oil will continue to support high prices, maintaining significant inflationary pressure on international markets.