European Stocks Hold Steady Amid Rising Oil Prices and Yields, Set for Weekly Decline

European Stocks Unchanged, Facing Weekly Loss Amid High Oil Prices and Yields

Market Overview and Key Drivers

European Shares Remain Flat

August 21 (Reuters) – European equities were largely flat on Friday, continuing a second consecutive week of declines as global bond market pressures intensified; a stalemate in the Gulf drove oil prices higher, raising inflation concerns.

The STOXX 600 index rose 0.06% to 650.79 points at 07:05 GMT, remaining on course for a second straight weekly decline.

Global Bond Market Pressures

U.S. Treasury Yields and Interventions

U.S. Treasury yields resumed their upward trajectory after Wednesday’s intervention offered only a brief respite to the strained bond market.

The move follows Treasury Secretary Scott Bessent’s statement that the government may expand Treasury buybacks and hint at broader fiscal consolidation.

Sectoral Performance

Basic Resources and Commodity Prices

Basic resources outperformed, gaining 1.3% as a weaker dollar boosted gold prices.

Geopolitical Tensions and Oil Prices

U.S.-Iran Relations

Bessent also reiterated President Donald Trump’s pledge of economic warfare against Iran, warning that the United States would impose “the toughest sanctions in history” on the country.

Impact on Oil Markets

The threats dampened optimism about a full reopening of the Strait of Hormuz, pushing Brent crude to a one‑month high of $94.71 per barrel before profit‑taking resumed.

(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Nivedita Bhattacharjee)

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