FX.co ★ European Stocks Head Lower as Oil Surges

European equity markets were poised to open sharply lower on Monday after oil prices climbed above $100 a barrel for the first time since 2022. The jump followed output cuts by major Middle Eastern producers and the continued closure of the vital Strait of Hormuz amid the war involving Iran. Investors have been reassessing interest rate expectations as the inflationary impact of higher energy costs starts to ripple through the economy. Sentiment was further pressured by fears that a prolonged conflict in the Middle East could inflict lasting damage on global growth. In addition, European Union gas storage levels have dropped below 30%, while benchmark gas prices have surged to their highest level in more than a year, intensifying strains on the bloc’s economy. Against this backdrop, investors will scrutinize Germany’s industrial production figures and keep a close eye on a meeting of Eurozone finance ministers in Brussels. In premarket trading, Euro Stoxx 50 futures were down 2%, and Stoxx 600 futures were 1.6% lower.