The U.S. began blocking ships from entering or exiting the Strait of Hormuz
European markets close lower as U.S. blockade of Strait of Hormuz begins
European stocks began the week in negative territory as global traders assessed developments in the Middle East over the weekend.
The pan-European Stoxx 600 provisionally ended the trading session 0.2% lower, with all major bourses sliding and most sectors in the red.
The U.S. began blocking ships from entering or exiting the Strait of Hormuz at 10 a.m. ET on Monday, in an attempt to pressure Iran to reopen the key oil route.
The move was announced by U.S. President Donald Trump in a post to his social media platform Truth Social on Sunday: “Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz.”
He added: “The Blockade will begin shortly. Other Countries will be involved with this Blockade. Iran will not be allowed to profit off this Illegal Act of EXTORTION.”
Travel and leisure stocks were among the worst hit, falling 0.9%, with carriers Wizz Air , EasyJet
and Lufthansa down 5.4%, 2.6% and 2.3%, respectively, as concerns over the supply of jet fuel to European airports rattled markets. Tui
was 1.7% lower, while German aircraft engine maker MTU Aero Engines ended the session 0.2% lower.
