European markets traded mixed on Monday as rising oil prices and ongoing tensions linked to the Iran conflict continued to weigh on investor sentiment. Major indices showed varied performance during the trading session. Germany’s DAX slipped slightly, while the UK’s FTSE 100 recovered earlier losses to trade higher. France’s CAC 40 also moved into positive territory by the afternoon.
The cautious mood followed declines across Asian markets, where investors reacted to escalating geopolitical risks and concerns over energy supply disruptions. Analysts said uncertainty around the duration of the conflict remains a key factor influencing market movements.
Oil prices have surged sharply since the conflict began in late February. Benchmark Brent crude has risen more than 50%, trading above $116 per barrel, compared to just over $70 before the escalation. US crude also climbed to around $101 per barrel, reflecting continued volatility in global energy markets.
Market experts warn that prolonged tensions could keep oil prices elevated, adding to global inflationary pressures and impacting economic growth.
Meanwhile, US markets have also faced sustained pressure, with major indices recording weekly losses and entering correction territory after falling more than 10% from recent peaks.
Asian markets saw significant declines, with Japan’s Nikkei 225 dropping sharply, alongside losses in South Korea, Hong Kong, and Australia. Concerns remain centered on potential disruptions in the Strait of Hormuz, a critical route for global oil shipments.
Geopolitical developments have further intensified market uncertainty. US President Donald Trump recently suggested the possibility of targeting Iran’s Kharg Island, a key oil export hub, raising fears of further escalation.
In response to the growing crisis, G7 finance ministers and central bank governors are scheduled to hold an emergency meeting to assess the economic impact and discuss potential measures.
