European shares dip as fresh US-Iran clashes rattle risk sentiment
- The pan-European STOXX 600 was down 0.1% at 604.68 points
European shares nudged lower on Tuesday, with investors on edge after the U.S. and Iran launched fresh attacks in Gulf waters, while global oil prices remained elevated.
The pan-European STOXX 600 was down 0.1% at 604.68 points, as of 0704 GMT, after posting its biggest drop in a month on Monday. Major regional bourses were also trading lower, with London’s FTSE 100 down 1%.
The escalation in the Middle East conflict followed U.S. President Donald Trump’s attempt to get stranded vessels through the Strait of Hormuz, which connects the Gulf to wider markets and typically carries oil and gas supply equal to about 20% of global demand every day.
Soaring oil prices have weighed on energy-dependent Europe, stoking inflation fears that have led to expectations of two to three European Central Bank rate hikes this year and dragged shares below pre-war levels.
Shares of HSBC shed 5.1% after the lender reported an unexpected $400-million loss linked to a fraud case in Britain that resulted in first-quarter profit below estimates.
Anheuser-Busch InBev advanced 6.3% after the Belgian beer maker posted quarterly sales and profits well above forecast.