European shares rose on Tuesday but were still on track for their worst month since 2022, influenced by ongoing tensions with Iran. Oil prices surged, nearing record monthly increases, following Iran's attack on an oil tanker off Dubai.
The conflict began with U.S. and Israeli strikes against Iran on February 28th. As a result, Brent crude futures gained 2.4% to $115.50 a barrel, while U.S. WTI futures rose 1.4% to $104.34. Inflation in the Eurozone exceeded the ECB's target.
Robeco's Colin Graham stated that markets reacted favorably to reports that President Trump may end military operations even if the strait remains blocked, though he cautioned that prolonged disruption could raise recession risks.
The EU's energy chief called for preparedness for long-term energy market instability, highlighting the urgency of addressing the situation. The U.S. retail price of gasoline reached $4 a gallon.