AfD Wins Big in Germany as Brent Crude Surges Past $97
European markets closed near-flat on Monday despite a surge in political uncertainty. The far-right Alternative for Germany (AfD) party won big in Saxony-Anhalt, securing roughly 44% of the vote and marking its first major state-level win since World War II.
The AfD's victory came at the expense of Chancellor Friedrich Merz's Christian Democratic Union (CDU), which suffered its worst-ever result in the state since reunification. Germany's DAX 40 slipped 0.2% to 26,005 as a result.
The geopolitical landscape remains complex, with Brent crude prices surging above $97 after fresh US-Iran tanker strikes. The US destroyed one Iranian oil tanker and Tehran responded by threatening a new restricted zone outside the Strait of Hormuz.
Brent crude rose 1.4% to $97.63 as a result, while WTI crude added 1.8% to $93.10 a barrel. European gas prices jumped 2.1%, now up 20.8% on the month, amid an energy squeeze that's no longer confined to oil.
The European Central Bank is expected to deliver a 25-basis-point hike on Thursday, its second of the year, with eurozone inflation running at 3.3% in August against a 2% target.