European shares drop 0.9 percent on Middle East tensions
European shares fell 0.9% on Friday as Middle East tensions and rising oil prices weighed on sentiment. Investors now expect an April interest rate hike.
European markets retreated on Friday as geopolitical uncertainty in the Middle East dampened investor sentiment, despite the broader indices securing a modest weekly gain. The pan-European STOXX 600 index finished the session 0.9% lower at 575.37, though it ended the week up 0.4%.
The market volatility stems from diverging messages regarding the conflict. While the United States has previously hinted at ceasefire possibilities, officials in Iran have maintained a more cautious stance. Tensions escalated after the American presidency set a 10-day deadline for the reopening of the Strait of Hormuz, a vital artery for global oil shipments.
