European Shares Fall as ’Israel’s’ War on Iran Drags Into Fifth Day

By Staff, Agencies

European shares opened lower on Tuesday as the ongoing "Israeli" war on Iran entered its fifth consecutive day, deepening investor anxiety and prompting a shift toward safer assets. The mounting instability in the Middle East has added a new layer of volatility to already sensitive global markets.

By 0710 GMT, the pan-European STOXX 600 index had dropped 0.8% to 542.38 points, reversing Monday’s brief rebound that followed five straight sessions of losses.

The conflict has stirred global commodity markets, particularly oil. Crude prices initially ticked higher following the heightened tensions but later pulled back.

Despite the overall decline across European equities, energy shares edged up by 0.3%, outperforming the broader index as investors braced for potential supply disruptions.

European natural gas prices moved higher as traders braced for a potential escalation in the war and risks for global energy supplies.

Benchmark futures rose as much as 1.8% following choppy trading in the previous session, Bloomberg reported.

While Europe currently has adequate gas supplies, its strong dependence on global liquefied natural gas (LNG) markets leaves it vulnerable to price volatility whenever geopolitical tensions disrupt international energy trade.

The continent will also need to secure additional LNG in the coming months to rebuild its reserves, which fell to their lowest level in three years this past winter.

Dutch front-month futures, Europe’s gas benchmark, rose 0.6%% to €38.12 a megawatt-hour by 8:52 a.m. in Amsterdam.

The markets were rattled after US President Donald Trump called for Iranian civilians to evacuate Tehran, citing the country’s alleged rejection of a proposed nuclear deal.

Earlier today, Trump's early exit from the Group of Seven (G7) summit in Canada fueled speculation of deepening involvement in the conflict, though he later claimed the move had “nothing to do” with ceasefire negotiations.