The majority of the major European stock markets opened lower as military confrontations in the Middle East prompted a rush to safe-haven assets like Treasuries and gold while simultaneously driving up the price of oil by more than 3%.
European stocks slip: By 7:10 GMT, the pan-European STOXX 600 index had decreased 0.2%, with the chemical and travel & leisure sectors posting the biggest declines.
Military conflicts between Israel and the Palestinian Hamas party increased political unrest throughout the Middle East and raised fears about oil supply, causing international investors to become risk-averse.
The energy index increased 2.2% as oil prices increased by 3% to over $85 per barrel, putting pressure on the broader market due to worries about rising inflation.
Shares of European defence firms like Germany’s Rheinmetall, Italy’s Leonardo, and Sweden’s Saab all saw gains between 4.7% and 7.2% as investors anticipated a protracted military battle in the area.
On account of worries about rising fuel prices, airline stocks like those of British Airways owner IAG, Air France KLM, and Lufthansa declined by 2.7% to 4.8%.