European stock markets closed lower on Friday as heightened tensions in the Middle East rattled investors, overshadowing optimism from improving US-China trade relations.
The pan-European Stoxx Europe 600 index dropped 0.89% to finish at 544.94 points. Germany’s DAX 40 fell 1.07% to 23,516.23, France’s CAC 40 declined 1.04% to 7,684.68, and Italy’s FTSE MIB 30 tumbled 1.28% to 39,438.75. In the UK, the FTSE 100 slipped 0.39%, ending the session at 8,850.63.
Investor sentiment deteriorated sharply after Israel launched a large-scale military strike on Iran, raising fears of a broader regional conflict. The attack, which killed dozens including top Iranian commanders and nuclear scientists, prompted Iran to request an emergency UN Security Council meeting and pledge severe retaliation.
The euro also lost ground amid the uncertainty, declining 0.181% against the US dollar to trade around 1.156 as of 7.20 p.m. local time (1620GMT).
While markets had been buoyed earlier in the week by signs of progress in US-China trade talks, the sudden spike in geopolitical tensions shifted investor focus toward safe-haven assets and away from equities.
“Geopolitical shocks like this tend to spike volatility and reduce risk appetite,” said one analyst. “Even positive news like easing trade friction takes a backseat when investors are concerned about military escalation and energy market disruption.”
Market participants will be closely monitoring developments over the weekend for further clues on how the conflict may evolve and its potential impact on global markets.
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Ukraine targeted a warehouse belonging to Russia’s largest retailer, Wildberries, and an oil refinery overnight, while Moscow said its forces struck a ship carrying military cargo in the Black Sea.
The U.S. military said it completed its latest wave of strikes on Iran, a two-hour operation that hit dozens of targets. Washington described the strikes as a "powerful response" to Iranian missile attacks targeting U.S. forces in the Middle East a day earlier.
Iran’s army said it targeted U.S. military facilities in Bahrain and Kuwait with drone attacks. Tehran said the operations were carried out in retaliation for recent U.S. strikes.
Thousands of migrants have crossed into the Spanish exclave of Ceuta from Morocco, overwhelming border security and prompting local authorities to call for a national emergency and military deployment.
AnewZ travelled across northeastern Syria, where the scars of more than a decade of war remain visible but many believe the country has entered a new chapter.
Russia pounded Ukraine's capital Kyiv with ballistic missiles on Saturday, killing at least nine people and wounding 28 others, Kyiv Mayor Vitali Klitschko said.
Start your day informed with AnewZ Morning Brief. Here are the top news stories for the 1st of August, covering the latest developments.
U.S. President Donald Trump said the United States has not agreed to allow Ukraine to manufacture Patriot missile interceptors.
Spain said it had reversed an unprecedented surge of migrants into its North African enclave of Ceuta, with most of the approximately 50,000 people who crossed the border by land and sea already having returned voluntarily.
Thousands of people spent the night on beaches, waiting by fences or wading through the sea in the hope of reaching Europe, as an estimated 49,000 migrants crossed into Spain's enclave of Ceuta in just 24 hours.
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