European equities fell sharply, with Stoxx 600 down 0.9%, DAX down 1.1%, CAC 40 down 1.7% amid Hormuz tensions.
Iran’s navy warned off warships in the Strait of Hormuz after a “swift and decisive” warning, heightening geopolitical risk.
Brent crude futures rose above $110 per barrel, stoking inflation concerns and pushing bond yields higher, pressuring stocks.
U.S. President Donald Trump announced “Project Freedom” to reopen the strait, while a U.S. maritime centre created an enhanced security area.