European Stocks Dragged Down as US-Iran Tensions Reheat
European stock markets closed lower on Monday (April 20), amid growing concerns that renewed tensions between the United States and Iran could derail the fragile ceasefire. Investor sentiment was further dampened after incidents in the Gulf sparked renewed concerns about global geopolitical stability.
The pan-European Stoxx 600 index fell 0.9%, with nearly all major bourses and regional sectors ending in the red. Only the oil and gas sector managed to remain in positive territory, driven by potential energy supply disruptions due to the escalating situation in strategic Middle East shipping lanes.
Market pressure intensified after President Donald Trump announced on Sunday that a US Navy guided missile destroyer had fired on, crippling an Iranian-flagged cargo ship in the Gulf of Oman. Marines then reportedly boarded the vessel and seized it. This move was seen as a new escalation amid efforts to maintain calm following the ceasefire.
The situation escalated further after Iran reportedly fired on commercial vessels attempting to pass through the maritime route. Since last week, the US has also imposed a naval blockade on ships entering and leaving Iranian ports. Tehran views the blockade as a violation of the ongoing ceasefire, and it is cited as one of the reasons for canceling the talks originally expected to take place on Monday in Islamabad. (yds)
Source: Newsmaker.id
