Crude oil prices have climbed to their highest levels since June, driven by intensifying military conflict between the United States and Iran.
The escalation, characterized by days of US strikes and subsequent retaliatory attacks in the region, has reignited fears of a broader geopolitical crisis and potential supply disruptions.
3% to close at 24,956 points on Monday amid hopes of de-escalation, now faces significant headwinds.
This renewed volatility stands in stark contrast to the market sentiment just days prior, when a reported framework agreement between Washington and Tehran had sparked a rally in European equities.
The German DAX, which rose 1.3% to close at 24,956 points on Monday amid hopes of de-escalation, now faces significant headwinds.
While Asian and US markets provided a supportive backdrop overnight, the fresh wave of violence threatens to undermine the recovery attempt at the European open.
Investors are now weighing the risk of further supply chain shocks against the broader global equity momentum.