European Stocks Slide as Oil Prices Surge Despite Record IEA Reserve Release
European stocks fell further on Thursday as investors grappled with soaring oil prices and ongoing tensions in Iran. The pan-European Stoxx 600 slipped 0.5% shortly after the opening bell, with major bourses including the FTSE 100, DAX, and CAC 40 all registering losses. Most sectors traded in negative territory, reflecting heightened caution among traders.
Oil markets remained in focus after the International Energy Agency (IEA) announced a release of 400 million barrels from strategic reserves. The move aims to ease supply disruptions triggered by the war in Iran, but the agency did not specify an exact timeline for the release. Despite this historic intervention, Brent crude jumped over 8% overnight, hitting $100 per barrel as traders remained skeptical about the effectiveness of the measure.
The European market downturn coincides with rising geopolitical and trade uncertainties. The U.S. government recently launched new trade investigations into the European Union and more than a dozen other economies, potentially signaling future tariffs. Analysts say the combination of geopolitical tensions, volatile oil markets, and trade friction continues to weigh on investor sentiment.
In corporate news, Italian defense giant Leonardo saw shares climb 7.7% after reporting stronger-than-expected revenues of €19.5 billion ($22.5 billion) and a net profit of €1 billion, up 19% from the previous year. The company projects revenues of €21 billion this year and aims to reach €30 billion by 2030, with cumulative orders forecasted at €142 billion over the next five years, signaling optimism amid a turbulent market backdrop.
Meanwhile, German automaker BMW reported net profits above €7 billion for 2025, slightly exceeding market expectations. However, the company warned that tariff-related challenges could impact its automotive division’s margins. BMW shares fell around 2.7%, reflecting broader auto sector weakness, which dropped 1.1% as investors reassessed risks in Europe’s key industries.
source: cnbc