European Equities Decline Amid Middle East Tensions, Rising Oil and Yields

By EC Assets · Published 18 August 2026

European shares declined as oil prices and bond yields increased. Geopolitical concerns in the Middle East impacted investor sentiment. European markets closed weak on Monday. Investors largely avoided making large moves amid worries about escalating Middle East tensions and higher crude oil prices. European shares were mostly up Thursday, but oil prices fell. These movements occurred as talks to reopen the Strait of Hormuz remained stalled. Some European markets were mixed as Middle East tensions persisted. London's FTSE 100 Index rose 0.18% to 10,335, marking its second consecutive day of gains and outperforming other European peers. Germany's DAX Index fell 0.25% to 23,504. France's CAC Index gained 0.06% to 7,940. European shares were muted on Thursday ahead of euro zone employment data. Weaker commodity prices also weighed on energy and mining shares that day. Middle East disruptions are weighing on European airline operations. European jet fuel prices reached a new record as a Middle East war escalated. Allcargo Global explores overland Europe, Middle East routes to bypass supply chain disruptions. The US shifts missiles towards Iran, which raises concerns of gaps in European air defenses. Wealthy Middle East residents are house, hunting in Europe to escape war. Orange lifted its guidance on growth in Africa, the Middle East, and Europe. This article is intended for informational purposes only. It does not constitute investment advice.