European Markets Slide as Oil Surges After Strait of Hormuz Closure

European markets are reeling as a sudden spike in global energy prices sends shockwaves through already fragile economies. Brent crude has climbed above $82 a barrel, while benchmark European gas prices have soared 25 per cent, hitting their highest level in more than a year. The surge has reignited fears of inflation just as central banks believed they had finally brought post‑pandemic price pressures under control.

The market reaction has been swift and severe. The pan‑European STOXX 600 dropped 2.5 per cent in early trade, following a 1.7 per cent fall the previous day. Germany’s share market plunged 4 per cent by mid‑morning, reflecting deep investor anxiety across the continent.

The turmoil follows Europe waking to news that the Strait of Hormuz a vital chokepoint through which 20 per cent of the world’s oil supply passes had been closed to shipping. The shutdown immediately tightened global supply expectations, sending energy prices sharply higher and rattling financial markets.

Economists warn that if the disruption persists, Europe could face a renewed inflationary wave, complicating monetary policy at a time when households and businesses are still recovering from the last surge in living costs.