Published on 06/13/2025 at 03:17, updated on 06/13/2025 at 04:29
(Reuters) - Major European stock markets fell at the start of trading on Friday, as escalating military conflict in the Middle East triggered a flight to safe-haven assets and sent oil prices soaring.
In Paris, the CAC 40 dropped 1.29% to 7,665.18 points as of 07:08 GMT. In Frankfurt, the Dax slipped 1.45%, while in London, the FTSE 100 edged down 0.58%.
The EuroStoxx 50 index was down 1.55%, the FTSE urofirst 300 lost 1.10%, and the Stoxx 600 retreated by 1.09%.
Israel announced on Friday that it had struck nuclear sites, ballistic missile factories, and Iranian military commanders as part of an operation aimed at preventing Tehran from developing a nuclear weapon. Iran's Supreme Leader, Ayatollah Ali Khamenei, has vowed to retaliate.
"This morning's alarming escalation has dealt a blow to risk sentiment (...). As we await further information and a possible Iranian response, we should expect a further deterioration in risk appetite," noted Tony Sycamore, an analyst at IG.
Tensions in this key oil-producing region have also sent crude prices sharply higher, as markets weigh the risks to the Strait of Hormuz, a vital artery for global oil trade.
Among stocks, TotalEnergies led the CAC 40 with a gain of 2.3%, buoyed by rising crude prices alongside the rest of the energy sector. In London, Shell also advanced around 2%.
Major European defense companies, including Britain's BAE Systems, France's Dassault Aviation, and Sweden's Saab AB, rose between 2.9% and 3.6% in early trading, supported by the escalating tensions in the Middle East.
The airline sector, however, suffered losses, as many carriers stopped flying over Israeli, Iranian, Iraqi, and Jordanian airspace on Friday. Air France-KLM fell 5.4%, while Lufthansa dropped 4.4%.
 (Written by Diana Mandi, edited by Kate Entringer) 

Sumber : Reuters