European Markets Stumble as Oil Prices Surge on Middle East Conflict

The threat of disruption in the Strait of Hormuz dominated trading sentiment, pushing energy sector shares up 1.4%. Investors weighed these rising inflationary pressures against the backdrop of an approaching corporate earnings season. Travel and leisure stocks bore the brunt of the volatility, sliding 1.3% as fuel cost concerns mounted.

Ryanair led the decline among major components, dropping 4.6% after the airline posted a 34% slump in first-quarter profit. The company cited a combination of elevated fuel expenses and falling ticket fares for the disappointing results. Conversely, technology shares managed a 0.4% gain, supported by anticipation surrounding upcoming U.S. earnings reports and the ongoing artificial intelligence investment cycle. Market participants now look toward the European Central Bank’s session later this week, where officials are widely expected to hold current interest rates steady.