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Europe close: Markets fall, oil prices rise on reports of Hormuz attacks
By Josh White
Date: Wednesday 22 Apr 2026
(Sharecast News) - European equities closed lower on Wednesday while oil prices surged, as renewed hostilities in the Strait of Hormuz offset a surprise extension of the US-Iran ceasefire and heightened concerns over prolonged disruption to global energy supplies.
As Chris Beauchamp, chief market analyst at IG, noted, "there is an inescapable view that, with the US and Iran not looking likely to start talking, a resumption of hostilities is a distinct possibility."
The pan-European Stoxx 600 fell 0.31% to 614.12.
Germany's DAX declined 0.25% to 24,210.23, while France's CAC 40 dropped 0.96% to 8,156.43 and London's FTSE 100 slipped 0.21% to 10,476.46.
In commodities, Brent crude futures were last up 3.07% on ICE at $101.50 per barrel, and the NYMEX quote for West Texas Intermediate gained 2.96% to $92.32.
Beauchamp added that "US stocks have pushed higher while Europe languishes in the red," pointing to "an obvious contrast to today's market," with tech gains in the US helping drive that divergence.
Market sentiment was weighed by escalating tensions in the Middle East after Iran's Islamic Revolutionary Guard Corps navy reportedly seized two commercial vessels in the Strait of Hormuz, identified as MSC Francesca and Epaminondas, alleging they were operating without authorisation and manipulating navigation systems.
The United Kingdom Maritime Trade Operations also reported multiple incidents of vessels being fired upon in the region, including a Liberia-flagged ship that sustained bridge damage northeast of Oman.
A Panama-flagged vessel and another container ship were also targeted but escaped damage, with all crews reported safe.
Patrick Munnelly, market strategy partner at TickMill, said "market sentiment remained fragile throughout the day as traders tried to assess whether the latest extension of the ceasefire by president Trump would prove durable, with lingering doubts over whether either Iran or Israel would fully respect the arrangement."
The developments came despite US president Donald Trump announcing an extension to the two-week ceasefire with Tehran, only hours after threatening further military action if negotiations failed to progress.
Washington confirmed it would maintain its naval blockade of Iranian shipping, while Tehran was yet to commit to proposed talks in Islamabad, underscoring the fragile and inconsistent nature of diplomatic efforts.
Oil markets reacted sharply to the volatility, with Brent rebounding above $100 after falling as low as $86 a barrel last week, reflecting rapid shifts in expectations around supply disruption.
Euro area consumer confidence falls sharply
Economic data further underscored the pressure from rising energy prices.
Eurozone consumer confidence fell sharply in April, with the European Commission's indicator dropping 4.2 points to -20.6, its lowest level since December 2022, while the broader EU measure declined to -19.4.
In the UK, inflation accelerated to 3.3% in March from 3.0% in February, driven largely by a 4.9% rise in motor fuel prices, according to the Office for National Statistics.
Petrol prices climbed by 8.6p per litre to 140.2p, the highest since August 2024, while overall transport costs rose 4.7%.
Producer price data also reflected mounting cost pressures, with raw material input prices rising 5.4% year-on-year and factory gate prices increasing 2.6%.
Core inflation eased slightly to 3.3%.
UK housing data showed modest growth, with average house prices rising 1.2% year-on-year in February to £268,000, up from 1.0% in January.
Regional disparities remained pronounced, with northern England leading gains while London recorded a 3.3% annual decline.
Rental growth eased slightly, with average UK rents rising 3.4% year-on-year in March to £1,377.
ASMI in the green, FDJ United falls on outlook cut
Among individual stocks, ASM International rose 7.11% after the Dutch chip equipment maker reported better-than-expected first-quarter earnings.
On the downside, FDJ United fell 7.95% after cutting its 2026 outlook, while Eurofins Scientific dropped 9.69% following its latest results.
Reporting by Josh White for Sharecast.com.
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