European stocks retreat as oil soars on Middle East conflict

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European stocks retreat as oil soars on Middle East conflict

Investing.com - European stock markets traded lower Monday, as investors assessed the implications of the military conflict in the Middle East and the associated surge in oil prices.The Israeli-Palestinian conflict escalated to full-blown war over the weekend, as members of the Islamist group Hamas attacked several Israeli towns, killing hundreds of Israelis and abducted dozens more. In response, Israeli air strikes pounded numerous targets in Gaza, resulting in numerous casualties.

Last week saw oil prices post their steepest weekly losses since March, as Brent posted a decline of about 11% and WTI recorded an over 8% drop, on worries that persistently high interest rates will slow global growth and hammer fuel demand.Although this represents an improvement from the revised 0.6% drop the previous month, Germany, the eurozone’s dominant economy, has a high exposure to energy costs, and thus a sustained rise in oil prices would be an unwelcome blow.

 

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