Europe open: Shares down, oil up as US-Iran exchange strikes again

(Sharecast News) - European shares opened sharply lower and oil prices rose after the US and Iran exchanged strikes overnight, placing fresh strains on their already fragile ceasefire.

The Stoxx 600 index was down 0.83% in early deals with most benchmark indices in negative territory. Sentiment was also hit by further worries around valuation of artificial intelligence companies after another sell-off in Asia.

Germany's DAX led declines, down 1.37% at the open, while France's CAC 40 also slipped. Italy's FTSE MIB fell 0.95%, while Spain's IBEX 35 dipped 0.22%.

Oil prices jumped as the US on Tuesday said it had launched "a series of powerful" strikes against Iran after three oil tankers were attacked in the Strait of Hormuz.

"Strikes are in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz. Iran's demonstrated aggression was unwarranted, dangerous, and a clear violation of the ceasefire," US Central command said in a statement.

It later confirmed that more than 80 targets had been hit during the strikes. The Trump administration also said the US has revoked a waiver that allowed Iran to sell oil. The waiver was issued as part of the interim peace deal between the two.

In response, Brent crude surged 3.1% to $76.47 a barrel, while West Texas Intermediate was 3% higher at $72.59. Oil majors were an immediate beneficiary, with Aker BP, Equinor, Repsol, Var Energi, BP and Galp all higher.

Reporting by Frank Prenesti for Sharecast.com