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Rising Oil, Interest Rates Sink European Bourses Midday

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European bourses tracked lower midday Wednesday as traders weighed rising oil prices and interest rates, in the wake of renewed military hostilities in the Persian Gulf.

US President Donald Trump on Tuesday declared the US-Iran ceasefire "over," after Tehran repeatedly targeted commercial vessels in the Strait of Hormuz. The US and Iran are engaged in military strikes, and the Strait is apparently again closed to sea traffic.

Oil stocks led rare gains on continental trading floors, while bank and property shares lagged.

The pan-continental Stoxx Europe 600 Index was off 1.6% mid-session.

Front-month North Sea Brent crude-oil futures were up 5.7% midday, at $78.35 a barrel.

Yields on benchmark 10-year German bonds were higher, near 3.07%, and striking 15-year highs.

Investors also eyed Wall Street futures flashing red, and largely lower closes overnight on Asian exchanges.

In geopolitical news, European Union (EU) High Representative for Foreign Affairs and Security Policy Kaja Kallas posted on "X" that EU foreign ministers will meet with Gulf counterparts next Monday, to discuss "freedom of navigation" in the Strait of Hormuz.

On the sector indices, the Stoxx Europe 600 Technology Index was down 1.6%, and the Stoxx 600 Banks Index lost 2.7%.

The Stoxx Europe 600 Oil and Gas Index rose 1.5%, while the Stoxx 600 Europe Food and Beverage Index declined 0.9%.

The REITE, a European REIT index, fell 2.2%.

On the national market indexes, Germany's DAX was down 2.1%, and the FTSE 100 in London lost 1.4%. The CAC 40 in Paris was up 2%, and Spain's IBEX 35 lifted 2.5%.

The Euro Stoxx 50 volatility index was up 12.5% at 18.89, but still indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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