European stock markets fall as oil prices surge after Iran natural gas facility attack

MaticHoleFiller · 2026-03-27T05:24:09+00:00

European stock markets turned lower, with the STOXX Europe 600 Index down 0.8%. Attacks on Iran's energy facilities pushed oil prices higher, sparking inflation concerns, and markets expect the European Central Bank to raise interest rates twice. Some companies like Boralay performed well, while others like HelloFresh face challenges of declining earnings.

MaticHoleFiller

2026-03-27 05:24:09

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European stock markets erase gains and turn to losses as Iranian energy facilities are attacked, pushing up oil prices and triggering inflation worries. Traders are betting that the European Central Bank will raise interest rates twice this year.

The Stoxx Europe 600 index fell 0.8%, after earlier rising 0.7%. After Iran said the U.S. and Israel attacked the South Pars giant natural gas field, the price of Brent crude oil briefly climbed to $109 per barrel. In response, Iran has designated energy assets belonging to Saudi Arabia, Qatar, and the UAE as retaliation targets.

Data showed that U.S. wholesale inflation in February unexpectedly accelerated month over month, reflecting higher costs for commodities and services. Before the Federal Reserve announced its policy decision later on Wednesday and the ECB announced its rate decision on Thursday, markets were closely watching price pressures.

European stock markets are facing their worst month in more than three years. Soaring energy prices have raised concerns about worsening inflation and slower economic growth, leading to declines in equities.

“Stock markets remain highly sensitive to the situation in the Middle East,” said Wolf von Rotberg, an equity strategist at Bank J. Safra Sarasin. “As long as the conflict continues and oil prices remain near current levels, the stock market is unlikely to sustain a recovery.”

On individual stocks, Polarette rose 11% after the French enterprise group said it would pay a special dividend. Diploma Plc hit a record high, with the building components supplier raising its full-year forecast for organically generated revenue.

In addition, HelloFresh SE fell 15%. The meal-kit delivery company said sales are expected to decline for the second consecutive year. Swatch fell 4.5%, with the Swiss watchmaker being affected by tariffs and trade disruptions.

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Responsible editor: Ding Wenwu

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