Negative opening for European Markets: Trump’s TACO strategy continues

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.