Source: Sharecast
The pan-regional Stoxx 600 was down 0.25% at 535.18 in early deals with all major bourses lower. Oil jumped by $1 a barrel to $78 after surging to more than $81 after the attacks.
US forces launched a surprise attack against three nuclear sites in Fordo, Isfahan and Natanz. US President Donald Trump on Friday said initially that he would make a decision to attack Iran “within the next two weeks” and join Israel's war against its neighbour.
Iran’s regime threatened to close the Strait of Hormuz -a key oil supply gateway – creating inflationary fears among investors.
“The next turn of events will inevitably dictate investor sentiment, with traders currently braced for retaliatory Iranian action, as well as keeping a close eye on the Strait of Hormuz, where a disruption of oil flows could follow,” said Interactive Investor head of markets Richard Hunter.
“At the moment, the recent spike in the oil price has led to a gain of 4.8% so far this year, but perhaps of equal concern is the inflationary effect the rising level could have.”
The news boosted oil stocks with Galp, BP, Equinor and Shell all up. However, shares in airlines were hit on the threat of higher fuel costs and flight cancellations to the troubled Middle East.
Reporting by Frank Prenesti for Sharecast.com