STOXX 600 Drops 1.3 Percent as Middle East Conflict Persists
European shares fell Thursday as the Middle East conflict pressured industrial stocks. Policymakers warned of inflation risks as energy supply remains tight.
European equities retreated on Thursday, with the pan-European STOXX 600 index closing 1.3% lower. This reversal followed a brief morning gain of 0.6% and came a day after the index recorded its strongest session in over three months. Market sentiment soured as the conflict in the Middle East showed no signs of abating, with new attacks on tankers raising concerns over global energy supplies and economic stability.
The ongoing war involving the United States, Israel, and Iran entered its sixth day. In Washington, the Senate blocked a motion to halt the American air campaign, while the geographical scope of the conflict appeared to widen, threatening critical energy infrastructure in the Gulf and disrupting international shipping lanes.
