European markets experienced a significant downturn, with the STOXX 600 index sliding due to escalating energy inflation fears stemming from the U.S.-Iran tensions. Rising costs are impacting consumer and producer prices, prompting expectations of interest rate hikes. Economically sensitive sectors and defence stocks bore the brunt of the sell-off, despite some positive corporate news.
Oil slips after OPEC+ agrees to raise output targets
Oil prices dipped as OPEC+ agreed to boost output from August, with key producers seeing recovering exports via the Strait of Hormuz. Despite the planned