European stocks extended their declines on Wednesday, with both the STOXX 50 and the STOXX 600 losing close to 2% amid mounting geopolitical tensions. Oil prices rose for a second consecutive session after US President Trump stated that “as far as I’m concerned, the ceasefire is over.” The US also carried out new strikes on Iran and revoked a waiver that had allowed the country to export crude to global markets, heightening worries about further supply disruptions.
At the same time, President Trump criticized Spain for failing to meet NATO defense spending targets, describing the country as “a terrible partner” within the alliance. Most sectors traded lower, with healthcare, banking, and financial services among the weakest performers, while energy stocks defied the broader market sell-off.
Shares in HSBC (-1.9%), Roche (-1.6%), AstraZeneca (-1.2%), LVMH (-2.5%), Hermès (-3.6%), and Banco Santander (-4.3%) all finished in negative territory, whereas Repsol (+3.8%), BP (+3.1%), and Eni (+3.2%) outperformed.
