European energy shares registered heavy losses Wednesday as oil markets reacted to news of a conditional halt to hostilities between the United States and Iran. The easing of conflict that has lasted more than five weeks - and that has claimed over 5,000 lives across nearly a dozen countries, including more than 1,600 civilian deaths in Iran - sent crude benchmarks sharply lower and pressured energy names across the region.
By 07:22 GMT, several large integrated oil companies had posted steep declines. Royal Dutch Shell shares were down more than 6%, BP dropped about 8%, TotalEnergies fell roughly 5.4%, and Eni slid 7.2%. Portuguese and Spanish energy groups also moved lower, with Galp down around 6.2% and Repsol off about 8%. Smaller oil producer Maurel et Prom experienced the steepest fall reported, sinking as much as 18.7%.
Crude prices absorbed the bulk of the negative repricing. Brent crude lost 13%, trading at $94.80 and touching an intraday low of $91.70 - its weakest reading since March 25. U.S. West Texas Intermediate (WTI) tumbled nearly 15% to $96.21. The price moves marked a sharp reversal in oil markets on the news of reduced geopolitical risk.
In contrast to energy equities, broader European stock markets advanced. The FTSE 100 rose 2.7%, Germany's DAX gained nearly 5%, France's CAC 40 added 3.4%, and the pan-European Stoxx 600 jumped 3.6%. U.S. equity futures were also stronger, with S&P 500 futures up 2.6% to 6,828.50.
The move toward de-escalation followed an announcement from U.S. President Donald Trump late Tuesday that he had agreed to suspend planned attacks on Iranian infrastructure for two weeks. On his social platform, he said the pause was "subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz."
Iran's Foreign Minister Abbas Araghchi, speaking for the country's Supreme National Security Council, stated that Tehran's armed forces will "cease their defensive operations." Those public statements from both sides underpinned the rapid change in perceived risk for oil supply, which in turn influenced prices and the sectoral shifts in equity markets.
Overall, the market response combined a sharp revaluation of oil-related assets with a broader rally in major equity benchmarks, reflecting how changes in geopolitical risk can quickly alter price action across commodities and stocks.