European Shares Set to Drop as Israel-Iran Conflict Intensifies
Traders suffered heavy losses in the Iran-Israel war market.
The New York
Traders Face Heavy Losses as Israel-Iran Conflict Shakes Markets
Global financial markets have been rocked by the escalating conflict between Israel and Iran, with traders facing significant losses as the war, now in its fifth day, continues to disrupt investor confidence. The conflict, which intensified after Israel’s airstrikes on Iranian nuclear and military targets on June 13, followed by Iran’s retaliatory missile strikes, has triggered sharp declines in stock markets and a surge in oil prices, leaving traders grappling with heightened volatility۔
On Friday, June 13, Wall Street saw steep declines, with the Dow Jones Industrial Average plummeting 769.83 points (1.79%) to 42,197.79, the S&P 500 dropping 1.13% to 5,976.97, and the Nasdaq Composite falling 1.30% to 19,406.83. European markets also suffered, with the pan-European STOXX 600 index sliding 0.7% to 546.09, and major indices like Germany’s DAX and France’s CAC 40 projected to open 0.5% to 1.7% lower today. Asian markets followed suit, with Japan’s Nikkei 225 down 0.89% and South Korea’s Kospi dropping 0.87%. Gulf stock markets, particularly Qatar’s QSI index, fell 2.9% on Sunday as fears of regional escalation grew.
The primary driver of these losses has been the fear of a broader Middle East conflict disrupting oil supplies, particularly through the Strait of Hormuz, which handles about 20% of global oil trade. Brent crude surged 7% to $74.23 per barrel on Friday, with intraday spikes reaching 13%, marking the largest single-day gain since March 2022. U.S. crude climbed 7.26% to $72.98 per barrel. This oil price rally battered sectors sensitive to fuel costs, with airline stocks like United Airlines (down 4.4%), Delta Air Lines (down 3.8%), and travel companies like Expedia and Booking Holdings (each down ~2%) taking heavy hits
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