European stocks fall in early trading, oil prices rise over 2%

Tensions in the Middle East escalated again, leading to a decline in European stock markets in early trading.

As of 3:40 p.m. Hong Kong time, the UK FTSE 100 index stood at 10,586 points, down 79 points or 0.74%; the German DAX index was at 25,164 points, down 300 points or 1.18%; the French CAC 40 index was at 8,361 points, down 74 points or 0.89%; and the Italian FTSE MIB index was at 52,124 points, down 331 points or 0.63%.

Dow futures were temporarily reported at 53,007 points, down 190 points.

The U.S. Central Command stated that the U.S. military has begun to resume a series of strong strikes against Iran in response to Iran's targeting and attacks on commercial shipping operated by civilian crews in international waterways.

The U.S. Treasury announced that new Iranian oil-related transactions are prohibited as of Tuesday this week, revoking the 60-day exemption on Iranian energy restrictions that was in place until late August. This new round of U.S. strikes may reignite conflict in the Middle East and raise concerns over a potential closure of the Strait of Hormuz again.

Oil prices rose, with New York crude oil futures now at $72.31 per barrel, up $1.87 or 2.65%; London Brent crude oil was at $76.09 per barrel, up $1.93 or 2.59%.