Sentiment is being dampened primarily by developments in the energy market. Brent North Sea crude and U.S. West Texas Intermediate (WTI) continued their upward trajectory, each gaining around 2% to reach 115.09 and 101.43 dollars per barrel (159 liters), respectively. This keeps prices at their highest levels in nearly four years. The conflict has removed approximately 11 million barrels of oil per day from the global market. The Islamic Republic has largely blocked maritime traffic in the Strait of Hormuz - a critical waterway for global oil and natural gas supplies. Typically, about one-fifth of the world's supply of crude oil and liquefied natural gas is transported through this strait.
ATTACKS ON SMELTERS BOLSTER ALUMINUM PRICES
The sharp rise in oil prices triggered by the Iran conflict is clearly impacting consumer prices, according to preliminary data from German federal states. The Federal Statistical Office is expected to release an initial estimate for nationwide inflation this afternoon. Economists surveyed by Reuters anticipate an inflation rate of 2.7%, up from 1.9% in February. This would represent the highest reading in over two years. Meanwhile, business climate in the Eurozone has deteriorated, according to data from the EU Commission.
Iranian attacks on aluminum smelters in the Middle East are simultaneously driving up the price of the light metal. On the London Metal Exchange (LME), aluminum rose by approximately 3.5% on Monday. Major producers Emirates Global Aluminum and Aluminium Bahrain reported over the weekend that their facilities sustained significant damage from drone and missile strikes. According to experts at ING Economics, this could lead to supply disruptions that may persist even if geopolitical tensions ease. The Iranian Revolutionary Guard stated that the attacks were in retaliation for U.S.-Israeli strikes on Iranian infrastructure.
SUSS MICROTEC AND CECONOMY UNDER PRESSURE
Among individual stocks, Suss Microtec drew attention with a decline of more than 7%. Following record revenues in 2025, the semiconductor equipment manufacturer expects lower sales and earnings for the current year.
Shares of Ceconomy also tumbled, losing nearly 6%. The Chinese internet giant JD.com's potential acquisition of the "MediaMarkt" and "Saturn" holding company may be facing last-minute hurdles from the Austrian state.
Delivery Hero was also offloaded by investors, falling by over 4%. Analysts remain divided over the company's future in light of growing pressure from a major shareholder.
In London, shares of mining giant Rio Tinto were in demand. The stock rose by 3.5%, making it the top gainer on the FTSE benchmark index. The world's largest iron ore producer announced that loading operations at three of its four terminals in Western Australia's Pilbara region resumed on Saturday. Cyclone "Narelle" had forced the closure of the ports on Tuesday.
(Report by Sanne Schimanski, edited by Olaf Brenner. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
