European stocks plummet as Middle East tensions spike oil prices. The pan-European Stoxx 600 fell 2.3% Monday morning, with major indices across the region declining sharply. Germany's DAX dropped 2.5%, France's CAC 40 fell 2.4%, and the U.K.'s FTSE slid 1.6%. Oil surged past $110 per barrel for the first time since Russia's Ukraine invasion, driven by production cuts from Kuwait, Iran, and the UAE following Strait of Hormuz closure. The energy sector was the only bright spot as traders fear higher fuel costs could slow economic growth. Asian markets tumbled overnight and U.S. futures fell sharply as investors brace for potential stagflation risks. President Trump stated the oil price increase was acceptable for countering Iran's nuclear threat, but markets remain concerned about broader economic implications from sustained energy price elevation.
