PROPERTY SEARCH
PROPERTY SEARCH
Oil prices up more than 4% as Middle East war hits European stock markets
Fresh geopolitical escalation between the United States, Israel and Iran, four days after the initial attacks, has unsettled investors and is driving energy prices sharply higher
European stock markets opened sharply lower this Tuesday morning, March 3, as renewed tensions in the Middle East are rattling investors and pushing oil prices up by more than 4%. The reaction came after a new wave of attacks by the United States and Israel against Iran and a warning from the Iranian Revolutionary Guard that it would target any vessel crossing the Strait of Hormuz, a strategic corridor for global energy supplies.
Spain’s Ibex 35 began the session down 1.54% at 17,600.7 points shortly after 9am, falling below the psychological threshold of 17,800 points. The decline reflected broader market anxiety over the potential impact of further escalation in the region.
In early trading, the steepest losses on the Ibex were recorded by Naturgy, down 6.2%, followed by Acciona, which fell 4.2%, and ACS, down 3.19%. In contrast, Repsol rose 1.65%, benefiting from higher crude oil prices, while Indra gained 0.96%.
Other major European markets also opened in negative territory. Paris fell 1.5%, London 1.2%, Frankfurt 2% and Milan 1.5%, underlining the widespread concern among investors.
In commodities markets, Brent crude, the European benchmark, climbed 4.1% to $80.9 per barrel. West Texas Intermediate rose 3.6% to $73.8. On currency markets, the euro traded at $1.1644, while the yield on Spain’s ten-year government bond increased to 3.198%.
Analysts suggest that the market reaction may remain relatively contained, as investors had already partially priced in a possible escalation of the conflict.
“Risk assets, inflation expectations and rate outlooks would only change significantly if the uncertainty were to persist,” said Adam Hetts, global head of multi-asset at Janus Henderson.
Attention is focused primarily on oil. Iran accounts for around 3% to 4% of global crude production, but the regional repercussions are already being felt.
Hetts noted that “the attacks have caused what is essentially a disruption of traffic through the Strait of Hormuz”.
Approximately 20% of the world’s oil supply passes through this narrow passage, making it a critical bottleneck for energy transport.
Sergio Ávila, senior market analyst at IG, warned that “the closure of the Strait of Hormuz is driving up energy prices and hitting Europe, which is experiencing historically low levels of gas storage”.
According to Renta4, equity markets are correcting “with limited intensity”, while traditional safe-haven assets such as gold and the dollar are rising. Gold has surged more than 3% to above $5,400 per ounce.
The Swiss private bank Julius Baer said the escalation has introduced a significant geopolitical risk premium into markets, mainly through oil. Although history suggests such shocks tend to have temporary effects on equities, analysts cautioned that elevated index levels increase short-term vulnerability.
Address
El Albujon, Cartagena, Murcia, 30330Tel: 0034 644 462 145
Free energy bill comparison anywhere in Spain
Spanish Energy, in collaboration with Gana Energy, offers a comprehensive comparison of energy plans and products in English.
Their knowledgeable team will guide you through the different options for saving money on your energy bills in Spain, explaining how their plans work and answering any questions you may have.
There is no fee for switchover, no hidden charges and the energy comparison is completely free.
To reach out to them for a FREE quote, send a WhatsApp to +34 644 462 145 or email steve@spanishenergy.es.
Alternatively, you can go to www.spanishenergy.es and all you have to do is submit a recent energy bill to get your FREE, no-obligation switchover quote and start saving straight away!
