Mucahithan Avcioglu
12 March 2026•Update: 12 March 2026
By Mucahithan Avcioglu
ISTANBUL (AA) - European stocks ended Thursday in negative territory with escalating tensions in the Middle East and surging oil prices.
The pan-European Stoxx Europe 600 index declined 0.61% to close at 598.86 points.
Among major indices, the UK’s FTSE 100 fell 0.47% to 10,305.15, Italy’s FTSE MIB 30 dropped 0.71% to 44,456.18 and France’s CAC 40 slipped 0.71% to 7,984.44.
Germany’s DAX 40 edged down 0.21% to 23,589.65, showing relative resilience, while Spain’s IBEX 35 posted the sharpest decline, falling 1.22%.
The euro weakened against the US dollar, with the euro/dollar pair down 0.35% at 1.153 as of 1745GMT.
Investor caution intensified amid volatility in energy markets and growing geopolitical uncertainty.
Despite the International Energy Agency’s proposal to release up to 400 million barrels from emergency oil reserves to offset supply disruptions linked to the Iran war, Brent crude climbed toward the $100 mark.
Brent crude futures traded around $98.59 per barrel, up 7.5%, as markets questioned whether strategic reserves would be sufficient to counter potential supply shocks.
Concerns were further fueled by signals from Iranian officials that the Strait of Hormuz could remain closed, raising fears about global energy supply security.
On the corporate side, European banking stocks declined on concerns about exposure to Middle East risks. HSBC fell nearly 6% after closing its Qatar branches, while Deutsche Bank dropped 5.3% following legal developments.
Thyssenkrupp shares plunged 8% after reports that a steel agreement with India’s Jindal Steel was nearing collapse.
On the positive side, Italian defense company Leonardo rose 5.7% after posting stronger-than-expected earnings. BMW gained 1.1% as its 2025 profit beat expectations despite warnings about tariff pressures.
Online fashion retailer Zalando surged 9.5% after announcing artificial intelligence initiatives and a share buyback plan, while German energy firm RWE advanced 3.9% on strong renewable investment prospects and dividend guidance.
