European Stocks Plunge Amid Concerns Over Soaring Oil Prices (Update)

[Image source=Yonhap News]

On the 7th, European stock markets are sharply falling due to the surge in international oil prices. As the West, including the United States, is considering a ban on oil exports, which is a core part of the 'sanctions against Russia,' international oil prices have surged, raising concerns in the market that stagflation, where inflation rises and the economy sharply slows down simultaneously, could occur.

As of 6:12 PM (Korea time) on the same day, the UK FTSE index was down 2.17% from the previous trading day at 6,835.73, the German DAX index plunged 4.07% to 12,561.04, and the French CAC index also dropped 3.10% to 5,873.79.

Brent crude oil surged as much as 18% intraday, approaching $140 per barrel, and West Texas Intermediate (WTI) crude oil also jumped to $130.50 intraday. This sharp rise in oil prices is a consequence of the official announcement that the United States is considering banning Russian oil exports together with allies such as the European Union (EU). Experts are concerned that if the export of Russian crude oil, a major oil-producing country, is banned, not only Russia but the global economy as a whole could be shaken.

Asian stock markets, including the domestic market, also closed lower on the day. The KOSPI closed at 2,651.31, down 62.12 points (2.29%) from the previous trading day. The KOSDAQ ended at 881.54, down 19.42 points (2.16%) from the previous session. Japan's Nikkei index recorded 25,221.41, down 764.06 points (2.94%).

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