STOXX 600 Hits Four-Month Low on Middle East Tensions
European shares fell to a four-month low on Monday as escalating Middle East tensions pushed oil prices above $100. Investors now expect ECB interest rate hikes.
European equity markets plummeted to a four-month low on Monday, with the pan-European STOXX 600 index sliding 2.2% to 561.11 points. This decline marks a formal entry into correction territory, as the index has retreated more than 11% from its record high in February. The selloff was primarily triggered by escalating tensions in the Middle East, which pushed energy costs higher and fueled concerns over aggressive monetary tightening.
The geopolitical landscape darkened as Iran issued threats against Israel and facilities supporting the United States in the Gulf region. These warnings followed a pledge from the American administration to target Iranian infrastructure. Consequently, Brent Crude Oil surged past $100 per barrel, raising the specter of persistent inflation across the continent.
