European stocks rise amid ongoing conflict in the Middle East

European stocks on Thursday, March 5, initially declined at the opening of trading amid the ongoing crisis in the Middle East, but then moved to the upside, CNBC writes.

The pan-European index Stoxx Europe 600 was losing 0.4% after the opening of trading, but then recovered the fall and traded in the plus zone by 0.5%. The British FTSE 100 was declining by 0.3%, but then also went into the green zone - at the time of publication adds 0.4%. German DAX at the opening of the session on Thursday fell by 0.6%, but later recovered this decline and adds 0.3%; French CAC 40 - fell by 0.5%, but at the time of publication its growth is 0.3%. Also in the minus in the first minutes of trading was the Spanish IBEX (minus 0.4%), but three hours after the start of trading - it has added about 1%.

Natural gas futures in Europe resumed rising on March 5, again approaching a high in nearly three years - after the U.S. administration unveiled no plans for security escorts for tankers through the Strait of Hormuz and Russian President Vladimir Putin threatened to cut off gas supplies to Europe.

Brent futures rose more than 2% to $83 per barrel, marking the fifth consecutive session of growth. West Texas Intermediate (WTI) crude oil in the U.S. also added 2% to $73.2 per barrel.

The attention of the world market is still focused on the war between the U.S. and Israel against Iran, Reuters and CNBC reported. The main concerns are related to the risks to trade flows through the Strait of Hormuz, said analysts ANZ. Iraq, OPEC's second-largest oil producer, cut output by nearly 1.5 million bpd on March 3 due to a shortage of storage and problems with export routes, Reuters reported.

Meanwhile, in Europe, Seeking Alpha notes, a batch of positive macroeconomic data was released: in particular, retail sales in Hungary rose 3.5% year-on-year in January. Switzerland's unemployment rate in February - not seasonally adjusted - remained stable at 3.2%. Industrial production in France rose by 0.5% in January compared to the previous month. The annual inflation rate in Sweden remained unchanged at 0.5% last month.

Nevertheless, global markets continue to keep a close eye on the US-Israeli war against Iran: the intensity of the strikes has increased over the past 24 hours, CNBC notes.

Israel on Wednesday, March 4, carried out a new series of attacks on Tehran, and the country's defense minister promised to "defeat" the Iranian regime's capabilities. The US, in turn, said it had destroyed 17 Iranian ships and nearly 2,000 targets. NATO air defenses, according to Ankara, the day before destroyed an Iranian ballistic missile headed toward Turkey (Iran denies launching a missile toward Turkey). Iranian forces have also attacked oil tankers in or near the Strait of Hormuz. According to the UK Maritime Trade Operations Office (UKMTO), explosions were reported near a tanker off the coast of Kuwait.

Reuters estimates, based on data from vessel tracking platform MarineTraffic, that at least 200 ships - including oil and LNG tankers and cargo ships - remain anchored in open waters off the coasts of major Gulf producers such as Iraq, Saudi Arabia and Qatar. Hundreds of other ships remain outside the Strait of Hormuz and cannot enter ports. The waterway is a key artery through which about one-fifth of the world's offshore oil supplies and a significant volume of LNG shipments pass.

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