European Markets Slide on Oil Surge and Geopolitical Tensions

European markets faced significant declines as rising oil prices and geopolitical tensions involving the U.S., Israel, and Iran intensified. The STOXX 600 experienced a third consecutive decline, heavily influenced by energy supply concerns. This turmoil has impacted various sectors, including transport and banks, with additional scrutiny on inflation data and future interest rate adjustments.

European shares plunged to their lowest point in over two months on Monday, driven by escalating oil prices and ongoing geopolitical tensions between the U.S. and Iran. The pan-European STOXX 600 dropped 1.8% by 0927 GMT, marking its third consecutive decline.

The benchmark index suffered a 5.5% hit last week, the steepest in nearly a year, now trailing 8% below its February 27 record high. The surge in oil prices, over 25% to just under $120 per barrel, shocked Europe's energy supply, heightening concerns amid fragile economic growth.

As Iran installed Mojtaba Khamenei as its supreme leader, reinforcing hardliner control, stock markets across Europe from Frankfurt to Paris slid. Basic resources and real estate sectors bore significant losses. Analysts are attentive to consumer price data from EU countries and potential implications for interest rate policies by the European Central Bank.

(With inputs from agencies.)