Tumultuous Markets Amid Iran War Impacting European Shares

European shares saw slight gains on Tuesday morning but were on course for their worst month since 2022, amid ongoing geopolitical tensions and economic disruptions. Oil prices surged due to the Iran war, resulting in increased inflation and energy market volatility. The situation has sparked fears of potential recession.

European shares inched up during Tuesday morning's trading session but remained set for their biggest monthly decline since 2022. This comes amid the ongoing turmoil caused by the Iran war, which has led to a substantial rise in oil prices.

The conflict, alongside threats from President Trump, has heavily influenced global markets, causing dramatic fluctuations in equity, commodities, and currencies. Market sentiment was relatively buoyed by reports suggesting President Trump may be willing to end military actions.

Brent crude hit $114.44 per barrel, potentially marking a record monthly gain, while the closure of the Strait of Hormuz has strained global oil supply chains. The European Union's energy chief has urged governments to brace for extended energy market disruptions, raising concerns over economic growth prospects.