Due to the impact of U.S.-Israel attacks on Iran, risk aversion in European financial markets has significantly intensified. On the 2nd, European natural gas prices surged by over 50% during trading, while the price of Brent crude oil futures in London rose sharply. European and U.S. stock markets opened with noticeable declines.

European markets are highly focused on the situation in the Strait of Hormuz in Iran. As one of the top three global exporters of liquefied natural gas (LNG), Qatar ships almost all of its LNG through the Strait of Hormuz, accounting for approximately 20% of global supply. About one-fifth of the world's crude oil transportation passes through this strait.

Due to Qatar Energy's announcement of suspending LNG production following an attack on its facilities, the benchmark European natural gas price surged by over 50% during trading on the 2nd. Meanwhile, Brent crude oil futures prices soared by nearly 13% to $82.37 per barrel, reaching the highest level since January 2025.

A spokesperson for the European Commission stated on the 2nd that the EU Gas Coordination Group will hold a meeting on the 4th to assess the impact of the Middle East situation.

On the same day, the UK's FTSE 100 index fell by over 100 points after opening, a decline of about 1.25%, while oil-related stocks saw significant gains. Germany's DAX index dropped to 24,651.33 points within half an hour of opening, a decline of over 2%. France's CAC 40 index opened with a 2.36% decline.

The three major U.S. stock indices in New York opened with significant declines on the 2nd, all falling by more than 1%.

John Prassal, Investment Strategy Director at Swiss Private Bank, stated that the market is currently under pressure from "escalating geopolitical tensions in the Middle East," with concerns that developments could affect regional stability and energy supply.

Kate Hudson, Investment Strategy Director at Hargreaves Lansdown Stockbrokers, pointed out that investors are particularly focused on the risks of "sharp increases in oil prices" and "supply chain disruptions," as well as concerns that inflationary pressures could further intensify as a result.

From:ChemNet