European stocks closed down 0.61%. HSBC's London share price was more than 3% lower than in Hong Kong.

SighingCashier · 2026-03-12T19:00:46+00:00

Middle East tensions are causing U.S. and European stock markets to decline, with the pan-European Stoxx 600 index falling 0.61%. Iran's new leader has threatened to close the Strait of Hormuz, triggering a rise in international oil prices, with Brent crude breaking through $100. HSBC shares fell due to the closure of its Qatar branch, while BMW stock rose slightly on higher profit expectations. Meanwhile, the Trump administration has launched trade investigations into multiple countries, aiming to apply tariff pressure.

SighingCashier

2026-03-12 19:00:46

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Rising Middle East conflict drags down US and European stocks on Thursday, with European markets fluctuating slightly lower. The pan-European Stoxx 600 index closed down 0.61% at 598 points. Investors are closely watching the Iran war and the highly volatile international oil prices.

Iran’s new Supreme Leader Mojtaba Khamenei has warned that the Strait of Hormuz should remain closed, and if the war continues, new fronts will be opened.

The International Energy Agency (IEA) earlier agreed to release 400 million barrels of oil reserves in stages to address supply disruptions caused by the Iran war. However, oil prices still rose, with Brent crude futures surpassing $100 per barrel. Traders remain skeptical that this strategic release can offset the global supply shocks caused by the war.

HSBC (00005) shares in London fell 3.5%, closing at £11.958, approximately HKD 124.9, down from HKD 128.9 at the Hong Kong market close, a decrease of 3.1%. The group announced an indefinite closure of its Qatar branch, raising concerns about HSBC’s risk exposure in the Middle East. Previously, Iran announced measures to target economic and banking assets related to the US and Israel in the region.

German automaker BMW reported a net profit of over €7 billion in 2025, slightly above market expectations. However, the group stated that tariffs related to the automotive industry would reduce BMW’s EBIT margin by about 1.25 percentage points this year. BMW’s stock rose 1.1%.

The UK FTSE 100 index closed at 10,305 points, down 0.47% or 48 points; Germany’s DAX index closed at 23,589 points, down 0.21% or 50 points; France’s CAC 70 index closed at 7,984 points, down 0.71% or 57 points; Italy’s FTSE MIB index closed at 44,456 points, down 0.71% or 316 points; Spain’s IBEX 35 index closed at 17,139 points, down 1.22% or 212 points.

The Trump administration announced a new round of trade investigations targeting 16 major trading partners, including China, the European Union, India, South Korea, and Japan, focusing on overcapacity in industrial production to reimpose tariff pressures.

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