European oil producer stocks climbed on Monday after the United States and Iran exchanged fresh military strikes over the weekend, with Tehran stating that it had once again closed the Strait of Hormuz.
The renewed hostilities have cast doubt on the temporary U.S.-Iran agreement signed last month, which was intended to reopen the critical waterway and bring an end to the conflict following an additional 60 days of negotiations.
Crude oil prices surged in response to the developments. Brent crude futures rose 2.9% to $78.24 per barrel at 11:25, while U.S. West Texas Intermediate (WTI) crude gained 2.7% to $73.34 per barrel.
As a result, the STOXX Europe 600 Oil & Gas, the benchmark index for European energy stocks, advanced 1.2%, making it one of the strongest-performing sectors within the broader STOXX 600 Index.
Among individual stocks, OMV and Repsol gained about 1% and 2%, respectively. TotalEnergies, Maurel & Prom, Eni, and Equinor rose between 1% and 2.1%, while Shell and BP advanced 1.1% and 2.3%, respectively.
The rally followed a weekend marked by escalating attacks between the two sides. Iran launched strikes on U.S. facilities across the Gulf region on Sunday, and Iran’s Islamic Revolutionary Guard Corps (IRGC) said on Monday that it had targeted American military bases in Kuwait and Bahrain.
Shipping data showed the impact on the Strait of Hormuz, a waterway that, before the conflict erupted in late February, carried around one-fifth of the world’s daily oil and liquefied natural gas supplies. Vessel traffic through the strait fell to its lowest level in five weeks on Sunday, with only six ships passing through, according to ship-tracking firm Kpler.
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