European Shares Fall to Lowest Level in a Year Due to Possible Russian Oil Embargo

European shares hit a one-year low on Monday as Western nations weighed the possibility of a Russian oil embargo, raising the prospect of broader inflationary risks and slowing economic growth, as Germany’s leading index looked likely to confirm a downward trend.

The pan-European Stoxx 600 index was down 2.4 percent. The German DAX index tumbled 3.7%, bringing the index’s decline to more than 20% since a record high close on January 5, which brought it into the market circle dominated by selling demand.

Gains in the major mining and energy companies on the London Stock Exchange slightly offset the rest of the losses on the FTSE 100 index, which fell only 1.1 percent, while the French CAC 40 fell 3.4 percent and the Italian index fell 2.9 percent.

Brent crude prices reached sharply high levels near $130 a barrel, the highest since 2008, after US Secretary of State Anthony Blinken said his country and its European allies were looking into banning Russian oil imports.

European oil and gas shares jumped 3.4 percent and mining companies 3.7 percent, making the two sectors the only gainers.

Shares of retail companies, automakers, and banks led the declines, with losses ranging between 4.7 and 5 percent.