Iran war enters third week, European stock markets open higher

Investing.com - European stock markets opened slightly higher on Monday as traders watch oil prices climb again above $100 a barrel, with conflicts in Iran entering the third week.

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As of 04:04 AM Eastern Time (08:04 GMT), the pan-European Stoxx 600 index edged up 0.1%, Germany’s DAX rose 0.1%, France’s CAC 40 increased 0.1%, and the UK’s FTSE 100 gained 0.4%.

The joint US and Israeli strikes on Iran continue to impact a broader Middle East region. Saudi Arabia said it intercepted more than 60 drones flying over the country, but did not specify their origin or targets.

Meanwhile, President Donald Trump called on seven countries to help Washington secure the Strait of Hormuz, a vital waterway that carries one-fifth of the world’s oil supplies. However, Trump did not disclose whether any countries agreed to his request.

The oil tankers passing through this heavily Iran-surrounded strait have effectively been shut down by Tehran, causing energy prices to surge and casting a shadow over the global economic outlook.

For Europe, this shutdown could reignite inflation in the region, which was thought to be largely under control just a few months ago. Europe is a major importer of energy products passing through the strait, which could pressure the recently stagnant economy.

As oil and natural gas prices soar, borrowing costs across the continent are also rising, partly reflecting concerns that the European Central Bank may be forced to consider raising interest rates again. The Stoxx 600 index remains under pressure, down more than 5% from its pre-war peak.

The European Central Bank and other major global central banks, including the Federal Reserve, are set to announce their latest monetary policy decisions later this week. Despite the conflict in the Middle East, economists polled by Reuters expect the ECB to keep rates unchanged for the rest of 2026.

Crude Oil Prices Rise

On Monday, oil prices rose amid volatile trading, with markets remaining highly alert to potential further supply disruptions in the Middle East.

After Trump called on other countries, including China, to help restore shipping through the Strait of Hormuz, crude oil prices briefly declined.

As of 04:06 AM Eastern Time, global benchmark Brent crude futures rose 2.7% to $105.90 per barrel, and US WTI crude futures increased 2.0% to $98.75 per barrel. Earlier, oil prices surged by as much as 3%, then narrowed gains and traded flat for a time.

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