Hormuz Tanker Hit Sends Global Stocks into Free Fall
Global stocks took a hit on Friday after a tanker was struck by an unknown projectile in the Strait of Hormuz, further escalating tensions between Iran and the US.
The incident has sparked fears about global oil supply, with Aramco informing at least two European refining customers that they would not receive any crude next month due to damage to the kingdom's East-West pipeline.
The FTSE 100 dropped 1.5%, while Germany's DAX and France's CAC fell by similar margins. Telecoms, retail, and insurers were among the hardest hit sectors, with stocks such as BT Group, Next, HSBC Holdings, and Lloyds Banking Group plummeting.
Despite the downturn, the FTSE 100 has managed to stay flat over the past week, thanks to a strong rally earlier in the week. However, the situation remains uncertain, with US President Trump hinting at sharply escalating the conflict.