Renewed military tensions between the United States and Iran, along with global interest-rate pressures, intensified selling in European stock markets. The benchmark Stoxx Europe 600 index ended the day down 0.56% at 647.46 points.
The decline in the indexes amounted to 0.39% for France's CAC 40 and 1.33% for Italy's FTSE MIB 30. The CAC 40 fell to 8,301.85 points, while the FTSE MIB 30 declined to 51,915.18 points.
Germany's DAX 40 index fell 1.1% to 25,970.11 points, while the UK's FTSE 100 declined 0.32% to 10,789.28 points. The euro-dollar exchange rate was down 0.25% at 1.159 as of 7:15 p.m. TRT.
Iran tensions drove energy prices higher
The escalation of military tensions between the United States and Iran renewed concerns about the security of energy supplies. The price of Brent crude for December delivery rose 4.8% to $92.60 per barrel, while West Texas Intermediate crude gained 3% to $88.35 per barrel.
European natural gas futures rose more than 2% to €71.50 per megawatt-hour. The increase in natural gas prices consequently exceeded 20% since the beginning of August, with prices reaching their highest level in three years.
Analysts assessed that tensions between the United States and Iran pose a risk of damaging energy infrastructure in the Persian Gulf and have revived the possibility of retaliation by Iran.
Bond yields rose
A sell-off in global bond markets also drove interest rates to their highest levels in recent years. Germany's 10-year and 2-year benchmark bond yields rose 1.1%.
Analysts said bond yields had reached levels not seen since the euro crisis. They described the development as a serious stress test for governments and capital markets.
