Oil Price Decline and Iran-Oman Talks Weigh on European Markets
European markets were subdued on Wednesday as investors weighed the impact of talks between Iran and Oman over the Strait of Hormuz, a key waterway for global oil shipments. The Iranian government confirmed that negotiations are ongoing with Oman to resolve issues related to the strait, which had been a point of contention in the US-Iran conflict.
The weaker oil price weighed on energy stocks, with BP and Shell's shares declining by 1.1 per cent and 0.5 per cent respectively. Brent oil for October delivery traded at $88.09 (€75.60) a barrel, down from $89.31 dollars late on Tuesday.
On the other hand, European banks led gains with a 1 per cent rise, as Deutsche Bank advanced 4.3 per cent to reach its highest since July 2011, while Commerzbank gained 2.8 per cent. The resilience of the European economy has been a major factor in investor optimism.