European markets started the week down more than 2% after oil prices surged

European stocks fell sharply at the opening of trading on March 9: the main indices declined by more than 2%. Investors on Monday faced a new round of turbulence in global markets: amid escalation in the Middle East, oil prices exceeded $110 per barrel for the first time since 2022, which caused a panic sell-off on Asian stock markets and expectations of a collapse in the United States.

The pan-European Stoxx 600 index fell 2.3% at the opening of trading on March 9, wiping out all of its gains this year, Bloomberg reports.

London's FTSE 100 fell 1.3 percent, Germany's DAX and France's CAC 40 fell 2.5 percent, while Spain's IBEX 35 and Italy's FTSE MIB collapsed 2.8 percent.

European markets are under pressure at the start of the trading week as oil prices surpassed $110 a barrel amid the conflict between the U.S. and Iran. The price of West Texas Intermediate (WTI) crude was up 13% at the opening bell in Europe, while benchmark Brent added almost 16%, trading above $107 a barrel.

Oil futures soared after the Middle East's top producers began cutting production due to the ongoing closure of a key transportation route, the Strait of Hormuz. Kuwait announced the cuts without specifying volumes, while Iraqi production reportedly fell by 70%, CNBC reported.

"The market is laying down the worst-case scenario," David Crook, head of trading at La Financiere de l'Echiquier, told Bloomberg. - "This sell-off is entirely linked to rising oil prices: the inflation that follows from it and the risk of stagflation.

This article was AI-translated and verified by a human editor