European stocks hit 4-month low on oil price surge

Business Mar 23, 2026

European stocks just hit a four-month low, with the STOXX 600 index dropping for the third week in a row.
Rising oil prices and worries about inflation, sparked by growing unrest in the Mideast, have pushed the index down roughly 11% so far this month.

Iran-Israel tensions raise oil price concerns

Europe relies heavily on oil passing through the Strait of Hormuz, so any tension there quickly shakes up markets.
With Iran threatening attacks and fears of key waterways closing, investors are bracing for higher costs and possible rate hikes from the European Central Bank.
All sectors took a hit, especially industrials, making it a tough month for European stocks compared to US markets.

All sectors take a hit

The STOXX 600 fell broadly, with industrials the biggest drag and the defense sector also weak.