European shares slide on geopolitical and trade risks
European shares fell 0.9% as Middle East tensions lifted oil prices. Investors also weighed U.S. tariff threats and ECB warnings about rising inflation risks.
STOXX EUROPE 600 fell 0.9% to 610.96 points as escalating conflict in the Middle East drove oil prices higher. The index is tracking toward a weekly loss as regional markets in Germany and the United Kingdom dropped 1% and 0.8%. Investors face renewed inflation risks and potential trade tariffs from the United States that could disrupt European growth.
### Geopolitical Friction and Energy Costs Oil prices rose after clashes in the Gulf between U.S. and Iranian forces. U.S. President Donald Trump said the ceasefire was still in effect despite the clashes, with Washington awaiting a response from Tehran to its proposal to end the conflict. Pepperstone head of research Chris Weston said risk management is the priority as the path to a lasting agreement remains non-linear. European equities are vulnerable to energy shocks due to the region's dependence on imported fuel.
