{"id":126898,"date":"2026-05-08T13:18:04","date_gmt":"2026-05-08T09:18:04","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=126898"},"modified":"2026-05-08T13:18:07","modified_gmt":"2026-05-08T09:18:07","slug":"european-stocks-plunge-as-u-s-iran-hormuz-clashes-shatter-peace-hopes-iag-slumps-on-fuel-cost-warning","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/european-stocks-plunge-as-u-s-iran-hormuz-clashes-shatter-peace-hopes-iag-slumps-on-fuel-cost-warning\/05\/08\/market-updates\/","title":{"rendered":"European Stocks Plunge as U.S.-Iran Hormuz Clashes Shatter Peace Hopes \u2014 IAG Slumps on Fuel Cost Warning"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Takeaways<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Broad-based decline:<\/strong> The Stoxx 600 slipped 0.77%, Germany&#8217;s DAX dropped 0.90%, France&#8217;s CAC 40 declined 0.73%, and the U.K.&#8217;s FTSE 100 fell 0.63%.<\/li>\n\n\n\n<li><strong>Hormuz clashes erupt:<\/strong> U.S. Central Command said American destroyers came under Iranian missile, drone, and small-boat attacks Thursday, prompting retaliatory U.S. strikes on Bandar Abbas and Qeshm port facilities.<\/li>\n\n\n\n<li><strong>Tanker targeted:<\/strong> Iran accused Washington of violating the ceasefire and targeting an Iranian oil tanker.<\/li>\n\n\n\n<li><strong>Trump&#8217;s response:<\/strong> The president called Iran&#8217;s leaders &#8220;lunatics,&#8221; warned Tehran to sign a deal &#8220;fast,&#8221; and described the U.S. strikes as merely a &#8220;love tap.&#8221;<\/li>\n\n\n\n<li><strong>Peace hopes dashed:<\/strong> The flare-up undermined optimism over a one-page framework for renewed talks expected to begin in Pakistan.<\/li>\n\n\n\n<li><strong>Hormuz still shut:<\/strong> The strait has been effectively closed since the war began on February 28.<\/li>\n\n\n\n<li><strong>IAG warning:<\/strong> British Airways&#8217; parent said annual profit would be lower than forecast as soaring jet fuel costs linked to the war weigh on earnings.<\/li>\n\n\n\n<li><strong>Intertek snubs EQT:<\/strong> The testing firm fell 4% after rejecting a third sweetened \u00a38.93 billion bid from Swedish private equity firm EQT.<\/li>\n\n\n\n<li><strong>Rightmove bucks the trend:<\/strong> The property portal reaffirmed 2026 guidance, with AI-powered tools driving membership growth.<\/li>\n\n\n\n<li><strong>Aviation fuel crunch:<\/strong> Transavia France cut 2% of May and June flights; Middle Eastern supplies account for three-quarters of Europe&#8217;s aviation fuel.<\/li>\n\n\n\n<li><strong>Political shock:<\/strong> Keir Starmer&#8217;s Labour suffered heavy local election losses, with Nigel Farage&#8217;s Reform UK making sweeping gains.<\/li>\n<\/ul>\n\n\n\n<p>European stocks fell on Friday as a fresh exchange of fire between the United States and Iran shook confidence in a month-long ceasefire, sending investors fleeing risk assets and pushing oil prices sharply higher.<\/p>\n\n\n\n<p>At 04:38 ET (08:38 GMT), the pan-European Stoxx 600 slipped 0.77%, the DAX in Germany dropped 0.90%, the FTSE 100 in the U.K. fell 0.63%, and the CAC 40 in France declined 0.73%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Hormuz Clashes Reignite Crisis<\/h2>\n\n\n\n<p>Sentiment soured after U.S. Central Command said American destroyers transiting the Strait of Hormuz came under Iranian missile, drone, and small-boat attacks on Thursday \u2014 prompting retaliatory U.S. strikes on Iranian port facilities at Bandar Abbas and Qeshm.<\/p>\n\n\n\n<p>Iran accused Washington of violating the ceasefire and said the U.S. had also targeted an Iranian oil tanker. U.S. President Donald Trump, who labeled Iran&#8217;s leaders &#8220;lunatics&#8221; and warned Tehran to sign a deal &#8220;fast,&#8221; later told reporters the ceasefire remained technically in effect \u2014 describing the U.S. strikes as merely a &#8220;love tap.&#8221;<\/p>\n\n\n\n<p>The flare-up dashed hopes that had powered European and U.S. stocks sharply higher earlier in the week, when reports emerged that Washington and Tehran were close to a one-page framework for renewed peace talks, expected to kick off in Pakistan.<\/p>\n\n\n\n<p>Those negotiations had fueled optimism that the Strait of Hormuz \u2014 effectively closed since the war began on February 28 \u2014 could finally reopen, easing the global energy squeeze.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Corporate Movers<\/h2>\n\n\n\n<p>IAG, the owner of British Airways, warned that annual profit would be lower than forecast as soaring jet fuel costs linked to the Iran war weigh on earnings.<\/p>\n\n\n\n<p>Testing firm Intertek fell 4% after rejecting a third sweetened \u00a38.93 billion takeover bid from Swedish private equity firm EQT, saying the offer significantly undervalued the company.<\/p>\n\n\n\n<p>Property portal Rightmove bucked the trend, reaffirming its 2026 guidance after its AI-powered tools drove core membership growth in line with expectations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Aviation Fuel Crunch Deepens<\/h2>\n\n\n\n<p>France&#8217;s transport minister said he did not expect massive flight cancellations this summer despite jet fuel shortages, though Transavia France has already cut 2% of its May and June flights as Europe scrambles for alternatives to Middle Eastern supplies \u2014 which account for three-quarters of the continent&#8217;s aviation fuel.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Political Earthquake in Britain<\/h2>\n\n\n\n<p>The mood was further darkened by British political developments, as Keir Starmer&#8217;s Labour Party suffered heavy losses in local elections, with the populist Reform UK party of Nigel Farage making sweeping gains across England, Scotland, and Wales.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Broad-based decline: The Stoxx 600 slipped 0.77%, Germany&#8217;s DAX dropped 0.90%, France&#8217;s CAC 40 declined 0.73%, and the U.K.&#8217;s FTSE 100 fell 0.63%. Hormuz clashes erupt: U.S. Central Command said American destroyers came under Iranian missile, drone, and small-boat attacks Thursday, prompting retaliatory U.S. strikes on Bandar Abbas and Qeshm port facilities. Tanker &hellip;<\/p>\n","protected":false},"author":9,"featured_media":98251,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[],"class_list":["post-126898","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/126898","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=126898"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/126898\/revisions"}],"predecessor-version":[{"id":126899,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/126898\/revisions\/126899"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/98251"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=126898"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=126898"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=126898"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}