European Stocks Fall Amid Continued Oil Price Surges
European stock markets closed lower on Thursday (March 12th) as investors monitored developments in the Iran war and volatility in global oil prices. The pan-European Stoxx 600 index ended down around 0.7%, with mixed sectoral movements.
Chemicals and utilities led gains, while banking stocks were the main drags on the index as investor concerns grew over European banks' potential exposure to the Middle East amid the protracted conflict.
Market focus turned to oil after the International Energy Agency (IEA) agreed on Wednesday to release 400 million barrels of oil reserves to respond to supply disruptions caused by the Iran war. However, the IEA did not set a detailed timetable for when the reserves would reach the market, stating that the release would occur within a timeframe tailored to conditions in each of its 32 member countries.
Oil prices rose despite the planned release, reflecting market doubts that the measure would be sufficient to offset the global supply shock. Brent briefly touched US$100 per barrel and was last up 8.6% at US$99.71, while WTI rose 9.3% to US$95.32.
Outside of energy, sentiment was also weighed down after the Trump administration announced new trade investigations into the European Union and more than a dozen other economies. The investigations are being conducted under Section 301 of the Trade Act of 1974, which allows the US to impose tariffs on imports from countries deemed to be engaging in unfair trade practices.
Source: Newsmaker.id
