STOXX 600 hits two-month low as energy prices surge higher
European markets fell Monday as oil prices approached $120 a barrel amid the Iran conflict. Rising energy costs have increased global inflation concerns.
European equity markets closed lower on Monday as a significant jump in energy prices intensified concerns regarding global inflation. The pan-European STOXX 600 index recorded its third consecutive session of losses, declining 0.6% and marking its weakest weekly performance in nearly a year. The index has now fallen nearly 6% from its record high reached in late February.
Geopolitical tensions contributed to market volatility, particularly as the conflict involving the United States, Israel, and Iran showed no signs of resolution. The appointment of Mojtaba Khamenei as the successor to the supreme leader in Tehran suggested a continued hardline stance, dampening hopes for a diplomatic breakthrough. The price of Brent Crude Oil has surged by more than 25%, reaching nearly $120 per barrel. This spike poses a significant risk to the European economy, which remains heavily reliant on imported energy sources.
