European equities traded sharply lower on Thursday, with investors reacting to escalating geopolitical tensions in the Middle East. The pan-European Stoxx 600 fell 1.4% shortly after midday in London, with most sectors and major regional bourses firmly in negative territory. Germany’s DAX led the declines, down 2.3%, while the FTSE 100, more heavily weighted toward oil and gas, fell 0.5%.
The technology sector faced its worst day since early February, as the Stoxx Europe Technology index dropped 3.1%. Traders cited heightened uncertainty and risk-off sentiment as key drivers of selling pressure, reversing some of the gains seen in earlier sessions. Asian markets also saw losses, with futures pointing to a weaker start for U.S.-listed stocks ahead of Thursday’s opening bell.
Oil prices surged in the wake of renewed geopolitical concerns, with Brent crude jumping more than 8% to $109.10 per barrel. The spike follows sustained disruptions in global energy supply chains, which have contributed to one of the steepest monthly increases in Brent prices since records began in the 1980s. Rising oil costs are adding to broader market volatility and weighing on investor sentiment across multiple sectors.
In corporate developments, British oil major Shell is reportedly in talks with a foreign government to develop four large offshore natural gas fields. Meanwhile, Ryanair CEO Michael O’Leary cautioned that the U.K. remains particularly vulnerable to jet fuel shortages if tensions persist, highlighting the broader economic impact of energy supply concerns on transportation and travel industries.
