European equity markets opened in negative territory on Tuesday, weighed down by renewed geopolitical instability in the Middle East.
The resumption of conflict in Iran has triggered a flight to safety, with investors pulling back from risk assets as uncertainty over energy supply routes mounts.
3% at the open, while London and Frankfurt faced heavier selling pressure, reflecting broad-based caution across the continent.
Milan’s FTSE MIB dipped 0.3% at the open, while London and Frankfurt faced heavier selling pressure, reflecting broad-based caution across the continent.
Oil prices moved higher in early trading, responding to the immediate threat to shipping lanes in the Strait of Hormuz.
The price action underscores the market’s sensitivity to any escalation in the region, where a significant portion of global crude flows.
Traders are closely monitoring tanker movements and potential disruptions to exports, a risk that has persisted since earlier warnings from Iranian authorities regarding approved shipping routes.
The sell-off in equities contrasts with the cautious sentiment seen in previous sessions, where markets had briefly stabilized amid hopes for de-escalation.
However, the latest developments have dashed those hopes, forcing a repricing of geopolitical risk.