European stocks fall 0.5% as Brent tops $100 and tensions escalate
Key Facts
European stocks fell in trading on 3 November, with the STOXX 600 down more than 0.5% to 645.8 points by 0817 GMT, while Germany, Spain and Italy indexes fell about 0.9%, according to Reuters data published via Investing.com. The moves came as tensions between the United States and Iran returned to the fore, alongside oil prices rising above $100 a barrel. A U.S. official said Washington carried out defensive strikes on Iranian targets in the Strait of Hormuz on Monday, while Iranian television reported hearing explosions on Qeshm Island, according to the Associated Press. The report did not specify that the island was a target of the strikes. This refocused investors on shipping and energy-supply risks, as technology shares also fell amid separate pressure on risk appetite.
Brent crude rose 1.6% to more than $100 a barrel on 3 November, recouping some of its losses after falling 7% in the previous session, according to Reuters. The rise in oil marked a swift reversal from the market move on 2 November, when the STOXX 600 closed up 0.42% at 649.44 points, near a two-month high, as Brent fell more than 7% amid hopes for progress in talks, according to an earlier Reuters report via MarketScreener. Lower prices then lifted Europe’s travel and leisure sector 3%, its biggest daily gain since June, while energy shares fell 2.3%. Before the open on 3 November, STOXX 600 futures had fallen more than 1%, while DAX and IBEX futures were down about 1% by 0712 GMT, according to Reuters via MarketScreener. The shift from gains in the previous session to losses in futures and the subsequent decline shows that equities moved alongside the oil reversal and changing geopolitical expectations.
Technology was the weakest European sector, falling 2%, according to Reuters. Aixtron shares fell 3.5% and ASML shares fell 2.8%, while Siemens Energy lost 2.4%. Pressure on risk appetite extended beyond geopolitical tensions: the report cited investors’ high valuations of artificial intelligence shares and Apple’s forecast of a weak gross margin in the holiday quarter because of rising memory-chip costs. By contrast, Bayer shares rose 6% after the company raised its 2026 earnings outlook, supporting the broader healthcare sector. The divergence shows that the decline did not affect European shares and sectors at the same pace, amid a mix of energy concerns, industrial cost pressures and company outlooks.
In Germany’s benchmark index, EL7 data showed the DAX closed at 25891.5 points on 2 November and then at 25740 points on 3 November. These closes put the day’s move in chronological context, separate from the preliminary declines for which reliable, verifiable data were not available here. Antofagasta and STMicroelectronics shares also closed at $43.39 and $47.17, respectively, on 2 November, according to EL7 data; those prices are from the previous session and do not represent the two shares’ performance in trading on 3 November. On the energy backdrop, U.S. Energy Information Administration data show that total oil flows through the Strait of Hormuz fell from 21.6 million barrels per day in the fourth quarter of 2025 to 4.9 million in the second quarter of 2026. The Associated Press said October saw the highest number of attacks on commercial vessels in the strait since March, amid Iran’s efforts to increase economic pressure on the United States to lift its blockade.
Oil volatility has remained part of the market backdrop since the war broke out; the Associated Press said the most-traded Brent contract had moved between about $70 and $120 a barrel since shortly before the war began, with rapid reversals. On the diplomatic track, the agency quoted regional officials as saying efforts had made progress and mediators were trying to reach a framework under which Iran would stop its attacks in the Strait of Hormuz in exchange for the United States lifting its blockade of Iranian ports. The officials said further talks were planned during the week. These diplomatic efforts put the possibility of easing tensions alongside the ongoing risks that pushed oil higher on 3 November. Market moves will remain tied to the outcome of the talks and developments around the strait, as investors assess their impact on oil and on shares in sectors sensitive to energy and costs.