European stock markets saw a downward shift on Wednesday as mounting tensions between the U.S. and Iran unsettled investors. Many closely analyzed company earnings like those from BP and Ericsson to assess the geopolitical conflict’s impact on corporate stability.
The pan-European STOXX 600 index decreased by 0.4% to 638.17 points by 0810 GMT, particularly driven by travel and leisure sectors falling 2%. In a day marked by geopolitical complexities, oil prices soared 2.6% to $85, following continued U.S. strikes against Iran and new shipping sanctions imposed by President Trump in the Strait of Hormuz.
Energy stocks exhibited growth, up 1.4%, benefitting from rising oil prices. BP’s stocks rose 3% owing to favorable trading outcomes projected in its quarterly reports. Meanwhile, Evotec suffered a 30% fall, as the German firm adjusted its 2026 outlook due to delays in key partnerships.
(With inputs from agencies.)
