European Stocks Stumble Amid Middle East Turmoil and Surging Oil Prices

European stocks took a hit on Friday, with investors grappling with the ongoing conflict in Iran, which has severely disrupted global energy supplies and intensified inflation anxieties, altering the outlook for interest rates.

The price of oil, which has surged 40% since the onset of the war, hovered above $100 per barrel, its highest since mid-2022. Prices showed some moderation on Friday after the U.S. government's issuance of a 30-day license allowing countries to purchase previously sanctioned Russian oil stranded at sea.

Europe's STOXX 600 dropped 0.6% in early trading, setting the index on track for a 6.1% decrease for March, marking its largest two-week slump in a year. Amidst these fluctuations, the U.S. dollar has emerged as a safe-haven, exerting pressure on other global currencies.