Stoxx 600, FTSE, CAC, DAX, Iran latest

LONDON – European shares started the new trading week sharply lower as traders tracked developments in the Middle East and rising oil prices.

Pan-European Stoxx 600 London was down 1.4% at 12:25 p.m. (8:25 a.m. ET)., With all sectors except major stocks and oil and gas sales.

European investors were watching for more turbulence in global markets on Monday as oil prices rose to $110 a barrel on Sunday for the first time since Russia invaded Ukraine in 2022.

Yields on European government bonds rose sharply in early afternoon trade as the war in Iran and rising oil prices raised concerns about higher inflation.

In the UK, on ​​yields 10-year gilts – UK government borrowing benchmark – increased 15 basis points to 4.776%. The yield on 2-year gilts rose 27 basis points to 4.140% in early trade, while 5-year gilts were 19 basis points higher at 4.312%. In Germany, 2-year bunds rose nearly 9 basis points, pushing short-term borrowing costs to 2.3974%.

Fuel prices have risen after major Middle Eastern oil producers Kuwait, Iran and the UAE cut oil production after closing the Strait of Hormuz.

US President Donald Trump posted on Truth Social on Sunday that “short-term oil price gains” are the “lowest price to pay” to destroy Iran’s nuclear threat. “Only fools think differently!” Trump added.

In the midst of heavy selling, the British multinational miner Anglo-American Down 5.5%, rolling to the bottom FTSE 100But Rolls RoyceThe London-listed aerospace and defense giant, last seen down 3.4%.

Asian markets fell overnight and US stock futures dipped to start the week trading amid fears that higher energy prices could slow the US economy dramatically.

In other news, Iran named Mojtaba Khamenei as its new Supreme Leader on Sunday, the Associated Press and Reuters reported, citing Iranian state media.

There were no major earnings or data releases from Europe on Monday.