European stocks opened the new week sharply lower as traders monitored developments in the Middle East and rising oil prices.
The pan-European STOXX 600 index fell by about 2.2% to 585.13 points, with all major sectors declining except for oil and gas.
Britain’s FTSE index fell 1.9% to 10,085.80 points, Germany’s DAX index declined by about 2.7% to 22,960.48 points, and France’s CAC 40 index fell 2.5% to 7,788.23 points.
European investors woke up to more volatility in global markets on Monday, with oil prices on Sunday climbing above $110 a barrel for the first time since 2022, when Russia invaded Ukraine.
This increase comes after some of the largest oil producers in the Middle East, including Kuwait, Iran and the UAE, reduced their production following the closure of the Strait of Hormuz, one of the world's most important oil shipping lanes.
US President Donald Trump posted on the Truth Social platform on Sunday that the rise in short-term oil prices represents a very small price to pay for eliminating the Iranian nuclear threat, adding: Only fools think otherwise!
In Asia, markets experienced a sharp decline overnight, while US stock futures fell at the start of the week's trading, amid concerns that rising energy prices could significantly slow the US economy.
In another development, Iran appointed Mojtaba Khamenei as its new Supreme Leader on Sunday.
