European stock markets rise as a key oil hub in the UAE resumes operations

Since an important oil hub in the UAE resumed operations, easing concerns over energy supply disruptions, European stock markets rose.

The STOXX Europe 600 Index increased by 0.4%, after earlier falling by 0.5% during the day. After a shutdown caused by a drone attack, the Fujairah oil terminal in the UAE has restarted, causing Brent crude oil to give up its gains, trading at about $102 per barrel. International Energy Agency Executive Director Fatih Birol also stated that if necessary, the agency can release more reserves.

Concerns that the Middle East conflict may last longer than expected have caused regional stock markets to experience their first two-week decline of the year. U.S. President Donald Trump has increased pressure on countries to help reopen the Strait of Hormuz and said the U.S. is in dialogue with Iran.

Stephan Kemper, Chief Investment Strategist at BNP Paribas Wealth Management, said, “I believe Trump is under immense pressure to resolve this issue quickly.” He also added that missile threats, market conditions, and midterm elections will likely prevent military action against Iran from lasting too long.

In individual stocks, UBS Bank erased earlier declines and rose 0.5% after proposing to acquire Commerzbank for €35 billion ($40 billion). GN Store Nord AS surged 21% after agreeing to sell its hearing aid business to Italy’s Amplifon SpA for 1.7 billion Danish kroner ($260 million).