European stock markets are watching negatively due to concerns that the escalating tension between the USA and Iran will increase oil prices and increase the selling pressure in the bond market.
The intensification of mutual attacks between the parties in the Middle East causes the downward trend in stock markets to continue. US President Donald Trump announced that the US blockade in the Strait of Hormuz has re-entered force and a 20 percent toll fee will be charged to all ships passing through the Strait.
Khatam al-Anbiya Central Headquarters, the unit of the Iranian Armed Forces that conducts the war, also made a statement: "We will not allow the USA to intervene in the Strait of Hormuz." Iranian Ministry of Foreign Affairs and Negotiation Team Spokesperson Ismail Bekayi said that the agreement has entered a crisis period.
With these conditions, as of 10.20 in the European markets, the Stoxx Europe 600 indicator index is at 637.7 points, with a decrease of 0.5 percent, and the FTSE 100 index in England is at 10,470 points, 0.3 percent below the previous closing.
In Germany, the DAX 40 index is at 25,003 points, 0.3 percent below the previous close, in Italy, the FTSE MIB 30 index is at 52,597 points, with a 0.4 percent loss, in France, the CAC 40 index is at 8,311 points, with a 0.6 percent loss of value, and in Spain, the IBEX 35 index is at 19,151 points, with a 0.9 percent decrease.
The Bank of England is also expected to tighten
Selling pressure is prominent in bond markets in Europe. The UK's 2-year bond rate increased by 13 basis points to 4.34 percent yesterday. Continuing its rise on the new trading day, the bond interest rate reached 4.44.
Predictions that the Bank of England (BoE), after the European Central Bank (ECB), may increase interest rates by the end of the year stand out in the pricing in money markets.
The BoE last reduced the policy rate by 25 basis points to 3.75 percent in December 2025. In its last policy text, the bank drew attention to geopolitical tension and price pressures resulting from increasing energy costs in the region.
10 European countries announced that they have established the Anti-Ballistic Missile Coalition
On the geopolitical side, 10 European countries, including France and Ukraine, announced that they established the Anti-Ballistic Missile Coalition against the increasing threat posed by ballistic missiles.
An Anti-Ballistic Missile Coalition meeting was held in Paris, the capital of France, hosted by French President Emmanuel Macron. After the meeting, the leaders of Denmark, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Ukraine and the United Kingdom made a joint written statement.
In the statement, it was stated that the leaders of these countries are aware of the threat posed by ballistic missiles and the increasing importance of defense capacity for the European Continent.
In the statement announcing the establishment of a coalition solely for defense purposes against ballistic missiles, "We declare our support for the (Coalition's) project, which aims to work tirelessly to develop anti-ballistic capacity." expressions were used.