Vadimrysev | Istock | Getty Images
LONDON — European stocks started the new trading week sharply lower as traders tracked developments in the Middle East and a surge in oil prices.
The pan-European Stoxx 600 was down 1.4% at 1:43 p.m. in London (9:43 a.m. ET), with major bourses and all sectors except for oil and gas selling off.
European investors were monitoring more turbulence in global markets on Monday as oil prices rose on Sunday to over $110 per barrel for the first time since 2022, when Russia invaded Ukraine.
By around 2 p.m. London time, West Texas Intermediate crude futures were 9.6% higher at $99.68 per barrel, while international benchmark Brent crude traded around 10% higher at $102.21 per barrel.
Yields in European government bonds also rose sharply in early afternoon trade, as the war in Iran and surging oil prices drove concerns over higher inflation.
In the U.K., yields on 10-Year Gilts — the benchmark for U.K. government borrowing — surged 11 basis points to 4.734%. Yields on 2-Year Gilts were 21 basis points higher, reaching 4.084%, while 5-year Gilts were 14 basis points higher, at 4.267%. In Germany, 2-Year Bunds rose by more than 5 basis points, pushing the cost of short-term borrowing to 2.3669%.
The energy price surge comes after major Middle Eastern oil producers Kuwait, Iran and the UAE cut oil production following the closure of the Strait of Hormuz.
Birds fly near a boat in the Strait of Hormuz amid the U.S.-Israeli conflict with Iran, as seen from Musandam, Oman, March 2, 2026.
Amr Alfiky | Reuters
U.S. President Donald Trump posted on Truth Social on Sunday that a gain in “short term oil prices” was a “very small price to pay” for destroying Iran’s nuclear threat. “Only fools would think differently!” Trump added.
Amid the heavy selling, British multinational miner Anglo-American was 4.7% lower, tumbling to the bottom of the FTSE 100, while Rolls-Royce, the London-listed aerospace and defense giant, was last seen 3.2% down.
Asia markets tumbled overnight and U.S. stocks plunged at the open amid fears that higher energy prices could dramatically slow the U.S. economy.
There are no major earnings or data releases from Europe on Monday.
