Key facts
- European shares were largely unchanged on Monday.
- Rising oil prices, driven by U.S.-Iran conflict, stoked inflation fears.
- Energy stocks saw a rise, while travel and leisure stocks declined.
- Brent crude prices reached their highest point in a month, exceeding $90 a barrel.
- Ryanair's stock fell after reporting a decrease in first-quarter profits.
- Tech stocks experienced a slight increase in anticipation of upcoming U.S. tech earnings.
European shares traded with little movement on Monday as escalating tensions between the U.S. and Iran propelled oil prices to a one-month high, raising inflation concerns. The pan-European STOXX 600 index remained largely unchanged at 641.65 at 0844 GMT.
The market's inertia coincided with reports of U.S. strikes on Iran, increasing risks to shipping through the Strait of Hormuz following immobilized tanker incidents. Consequently, Brent crude prices surged 3% to over $90 a barrel.
Energy stocks experienced a rise of 0.9%, while travel and leisure stocks fell by the same margin. Ryanair led the decline in the STOXX 600, dropping 5% after announcing a 34% decrease in first-quarter profits, attributed to higher fuel costs and reduced fares.
Meanwhile, tech stocks saw a modest uptick of 0.2%, with investors anticipating upcoming earnings reports from major U.S. technology firms that could potentially reignite an AI-driven market rally.