European stocks continue to trade lower with crude oil’s price at $100 U.S. a barrel and investors weighing the impact of the Iran war on economic growth.
The benchmark pan-European Stoxx 600 index was trading 0.5% lower in early trading on March 13 with all major regional stock indices and most sectors in negative territory.
Markets in Germany, France and the United Kingdom are all in the red and have been since the U.S. and Israel launched military strikes against Iraq on Feb. 28.
Energy prices remain in focus and are weighing heavily on the European Union (EU), which is a net importer of oil and natural gas.
The sharp spike in energy prices over the past week is expected to cause a spike in inflation across the European continent and could result in weaker economic growth.
Brent crude oil, the international standard, is trading right around $100 U.S. a barrel, despite the International Energy Agency (IEA) releasing a record 400 million barrels from its reserves.
West Texas Intermediate (WTI) crude oil, the U.S. benchmark, was last seen at $95.03 U.S., down 0.73%, as the U.S. Energy Department said it would release 172 million barrels of oil from its strategic reserves.
Additionally, the U.S. has issued a temporary 30-day waiver on sanctioned Russian oil in an effort to help ease a growing supply squeeze and rising prices.
Oil prices continue to move higher with the Strait of Hormuz waterway effectively closed. The Strait is where about 20% of the world’s crude is shipped.
Signs are already emerging of declining economic growth in certain areas of Europe, with data showing that the British economy posted no growth in January of this year.
Stocks in Asia also continue to falter, with Japan’s Nikkei 225 and South Korea’s Kospi indices each down sharply on the week.
Like Europe, most Asian nations are net importers of energy products.
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