European Stocks Close Lower Amid Surge in Oil Prices
European stocks closed sharply lower on Monday (March 9th) as market participants monitored escalating tensions in the Middle East and a surge in oil prices that have rekindled inflation concerns.
The pan-European Stoxx 600 index closed down around 0.7%, with most major bourses and almost all sectors in the red, except for the oil and gas sector.
Risk-off pressures intensified after oil prices rose on Sunday, briefly breaking US$110 per barrel for the first time since 2022. In recent trading, WTI futures were up around 5% at US$95.81 per barrel, while Brent futures rose nearly 8% to around US$100 per barrel.
The rise in energy prices quickly spread to the bond market. European government bond yields rose sharply as the war in Iran and the oil rally fueled concerns that energy cost pressures could prolong inflation, potentially complicating the path to interest rate cuts.
In the US, market sentiment was also influenced by President Donald Trump's remarks on Truth Social on Sunday, in which he described the "short-term" oil price increase as a "very small price" to pay in response to Iran's nuclear threat. These comments reinforced the market's perception that energy volatility could persist as long as geopolitical uncertainty persists.
Going forward, market participants will monitor developments in the conflict and its impact on energy supplies, the direction of oil price movements, and the response of the bond market, which serves as a barometer of inflation expectations and monetary policy.
Source: Newsmaker.id
