Fears of a potential escalation in the US-Iran conflict once again cast a shadow over global markets, leading to significant declines for European equities on Thursday. Shortly after 12:15 PM London time, the Europe STOXX 600 index was down 1.1%, paring some of its steeper losses from earlier in the session. The majority of sectors and major regional indices remained deep in negative territory.
Real-time data for major indices (as of reporting time):
* French CAC 40 Index (.FCHI): 7,880.28 points, down 100.99 points (-1.27%) * Italian FTSE MIB Index (.FTMIB): 44,902.73 points, down 812.22 points (-1.78%) * UK FTSE 100 Index (.FTSE): 10,318.04 points, down 46.75 points (-0.45%) * German DAX Index (.GDAXI): 22,777.15 points, down 521.74 points (-2.24%) * Spanish IBEX 35 Index (.IBEX): 17,280.30 points, down 300.10 points (-1.71%) * Europe STOXX 600 Index (.STOXX): 589.58 points, down 8.11 points (-1.36%)
Chip manufacturers were among the hardest hit, with the Europe STOXX Technology Index falling 3.1%, on track for its worst single-day performance since February 3rd. In an address to the American people on Wednesday evening, US President Donald Trump stated that he expects the conflict to last another two to three weeks, during which time US forces would subject Iran to "very powerful hits." As President Trump's speech concluded, US stock futures plummeted, reversing gains from Wednesday's regular Wall Street trading session. Futures data on Thursday morning indicated that New York-listed stocks were poised to open significantly lower. Asian markets also reversed gains on Thursday in response to the President's latest remarks. Oil prices surged following the President's address, with the global benchmark Brent crude jumping over 8% to $109.10 per barrel. Oil prices have risen substantially since the US and Israel initiated strikes against Iran on February 28th, which prompted retaliatory attacks by Iran in the Gulf region. For the entire month of March, the global benchmark Brent crude gained over 60%, marking its largest monthly increase on record since the 1980s. President Trump's proposed timeline for the Iran conflict may be insufficient to prevent disruption to oil demand. Prior to President Trump's Wednesday speech, European markets had been trading higher, after the President initially indicated the war would conclude within weeks. Investors also reacted to reports on Thursday suggesting that the Trump administration is preparing to impose new tariffs on pharmaceutical companies that fail to reach agreements guaranteeing low drug prices in the United States. Bloomberg News first reported the story, citing anonymous sources. In corporate news, it was reported that British oil major Shell is in discussions with the Venezuelan government to develop four large areas within the country's major offshore gas fields. Elsewhere, Ryanair CEO Michael O'Leary warned on Wednesday evening that as the Iran conflict continues, the UK is the market most vulnerable to aviation fuel shortages due to its high dependence on supplies from Kuwait.
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