European Stocks Fall on AI Fears and Middle East Tensions; Oil Surges

European stock markets declined on June 8, driven by renewed geopolitical tensions in the Middle East and concerns over the artificial intelligence sector. Iran launched missile attacks, prompting a sharp rise in oil prices, with Brent crude surging 3.8% to $96.6 per barrel. Asian tech stocks also fell amid AI-related worries. In Milan, shares of Mps and Mediobanca rallied, bucking the broader market weakness. The sell-off reflects investor risk aversion as geopolitical risks escalate and tech valuations come under pressure.

Global Impact

Geopolitically, the Iranian missile attacks risk further escalation in the Middle East, potentially disrupting oil supply routes and pushing Brent above $100. Economically, higher energy costs will feed into inflation, complicating central bank rate paths—especially for the ECB, which faces a stagflationary tilt.