European indices drop as Brent crude hits $100 amid Middle East tensions
European stock markets closed lower Wednesday as oil prices surged past the psychological barrier, reigniting inflation fears ahead of key U.S. data and an upcoming ECB decision.
European shares fell across major indices on Wednesday as renewed hostilities in West Asia drove Brent crude prices to $100 per barrel. The pan-European STOXX 600 index dropped 0.4% to 646.84 points at 0810 GMT. Germany's DAX declined 0.5%, the FTSE 100 in London lost 0.2%, and France's CAC 40 slipped 0.6%. Analysts from ING stated that ongoing military actions between the U.S., Iran, and regional proxies have prevented diplomatic de-escalation, sustaining supply anxieties. Deutsche Bank warned that energy shocks combined with drought could pressure food inflation in the coming quarters. Energy stocks rose nearly 1% as traders priced in persistent price pressures. The RBI noted India's rupee weakened to 95.11 against the U.S. dollar due to these global oil fears.
