Strait of Hormuz Blockade Rattles European Markets

The pan-European STOXX 600 index slipped 0.4% to 638.17 points in early trading, reflecting a broader retreat from risk. Airlines bore the immediate brunt of the price hike, with Air France and Lufthansa shares dropping approximately 2% as fuel cost projections spiked. Conversely, the energy sector provided a rare bright spot, climbing 1.4% as companies capitalized on the renewed pricing power of oil.

BP shares jumped 3% after the energy giant signaled strong second-quarter trading results, effectively insulating itself from the broader market malaise. Outside the energy sector, however, sentiment remained fragile. German biotech firm Evotec suffered a 30% collapse in valuation after management pushed back the timeline for key partnerships to 2026, forcing a sharp reassessment of the company’s near-term growth potential.