European stocks hit four-month low on Middle East conflict
The STOXX 600 fell 1.6% on Monday as Middle East tensions drove oil prices higher. Investors now expect the ECB to raise interest rates twice later this year.
European equity markets retreated to their lowest levels in four months on Monday as escalating geopolitical tensions in the Middle East fueled concerns over rising energy costs and inflationary pressures. The pan-European STOXX 600 index declined by 1.6% to 564.13 points during early trading, marking a continuation of the downward trend after three consecutive weeks of losses.
The market downturn was largely driven by threats from Iran to target Israel power infrastructure and facilities supporting United States bases in the Gulf. These warnings came in response to statements from the American administration regarding potential strikes on Iranian energy networks.
