Iran conflict continues to drive oil prices soaring, European stock markets open lower

Investing.com - On Thursday morning, European stocks edged lower as ongoing shipping disruptions caused by the Iran war pushed oil prices briefly above $100 per barrel again.

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As of 04:04 AM Eastern Time (16:04 Beijing Time), the pan-European Stoxx 600 index fell 0.4%, Germany’s DAX index declined 0.2%, France’s CAC 40 dropped 0.5%, and the UK’s FTSE 100 decreased 0.5%.

Oil futures surged, continuing the volatility in the crude market, despite the International Energy Agency’s efforts to release its largest-ever strategic oil reserves to help stabilize prices.

The U.S. also announced plans to tap into its oil reserves, but analysts note these measures may only provide temporary relief—only reopening tanker routes through the crucial Strait of Hormuz can truly ease the market’s supply shortages.

One-fifth of the world’s oil supply passes through this narrow strait in southern Iran, but shipping has nearly come to a halt due to Tehran’s threats to attack most ships attempting to traverse the strait.

Reports indicate Iran has also laid mines, and the U.S. Navy has not committed to escorting ships for safety reasons.

Traffic through the strait has almost completely stopped, causing oil flows to be blocked, crude prices to rise, and raising concerns about a potential surge in global inflation pressures. Europe and Asia are major import regions for oil and natural gas passing through the strait, making these areas vulnerable to the ongoing week-long attacks by the U.S. and Israel on Iran.

As of 04:05 AM Eastern Time, global benchmark Brent crude futures rose 4.3% to $95.92 per barrel, while U.S. West Texas Intermediate (WTI) increased 3.8% to $90.54 per barrel.

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