Air France-KLM was one of the weakest performers on the Amsterdam exchange on Monday, hit by flight cancellations in the Middle East and rising fuel costs. Oil and gas producers, including Shell, moved higher, supported by surging energy prices after US and Israeli strikes on Iran. Air France-KLM dropped more than 7 percent, while Shell gained 5 percent.
Overall sentiment on the Amsterdam exchange was negative due to the escalating conflict in the Middle East. In morning trading, the AEX index was down 1.2 percent at 1015.12 points. The MidKap fell 1.5 percent to 1017.43 points. Markets in Frankfurt, London and Paris declined by up to 2.4 percent.
In London, IAG — the owner of British Airways and Iberia — and easyJet fell 7 percent and 4 percent. Lufthansa lost 6 percent in Frankfurt. Meanwhile, UK oil company BP and its French counterpart, TotalEnergies, rose by more than 4 percent.
The unrest in the oil-rich Middle East led to a sharp increase in oil prices. A barrel of US crude rose 9 percent to 73.05 dollars, while Brent climbed nearly 10 percent to 80 dollars. Gas prices rose by more than one-fifth to 39 euros per megawatt hour after US and Israeli strikes on Iran and Iran’s retaliatory attacks. Fuel costs increased further as shipping through the Strait of Hormuz was halted, raising concerns that a prolonged conflict could push prices even higher. Iran has continued its attacks for a third day and says it will not negotiate with the United States.
In the AEX, chipmakers ASMI, Besi and ASML, along with banks ING and ABN AMRO, were among the biggest fallers, losing up to 4 percent. Wolters Kluwer and JDE Peet’s were the only gainers besides Shell, with increases of up to 0.5 percent.
@anp | NEWS BRAINPORT
