European Shares Dip as Oil Surges Despite IEA Release; Leonardo Rises Nearly 8%

Story: written by springnewsng March 12,2026
European stock markets extended losses on Thursday as investors grappled with rising oil prices and the ongoing conflict in Iran, which has disrupted global energy supplies.
By mid-morning, the Stoxx Europe 600 was down 0.5%, with major indices including CAC 40 (-0.57%), FTSE 100 (-0.44%), DAX (-0.34%), and IBEX 35 (-1.06%) all retreating. Most sectors traded in negative territory as market sentiment remained cautious.
Oil remained the focal point for traders after the International Energy Agency (IEA) announced plans to release 400 million barrels from strategic reserves to ease the supply squeeze caused by the Iran war. Despite this move, Brent crude jumped over 8% overnight, reaching $100 per barrel, as investors questioned whether the release would be sufficient to stabilize global markets. The IEA has not provided a specific timeline for the release, indicating that each member country will contribute in line with its circumstances.
The surge in crude prices comes amid fears of prolonged disruption in the Strait of Hormuz, a vital shipping corridor through which roughly 20% of the world’s oil flows. Analysts warn that continued instability in the region could further intensify energy price volatility and global inflationary pressures.
In corporate news, Leonardo, the Italian defense and aerospace group, surged 7.7% after posting full-year revenues of €19.5 billion ($22.5 billion) and a net profit of €1 billion, up 19% from 2025. The company projects revenues of €21 billion in 2026 and targets €30 billion by 2030, with cumulative orders expected to reach €142 billion over the next five years.
Meanwhile, BMW reported 2025 net profits slightly above expectations at €7 billion, but cited ongoing tariff-related challenges, sending shares down 2.7%. The auto sector as a whole fell 1.1%.
UK real estate firm Savills announced a $1.1 billion acquisition of Eastdil Secured alongside strong full-year earnings, with profits before tax rising 11% to £145 million ($194 million). Despite the positive results, shares dropped 4.4% as investors assessed the impact of the U.S. expansion.
Markets remain highly sensitive to geopolitical risks, energy price swings, and trade developments, with traders closely monitoring Iran, global oil flows, and international policy announcements.