Europe close: Shares close lower as Hormuz stalemate drags Stoxx lower

14th Aug 2026 12:31

(Sharecast News) - European shares closed lower on Friday as investors assessed the latest US treasury auction and threats from Washington to blockade Iran indefinitely.

The benchmark Stoxx 600 index finished 0.21% lower to 657.86. Germany's DAX closed 0.51% higher, while Spanish, UK, French and Italian shares were all lower.

European equities were also pressured by a weak long‑bond auction in the US, where a $25bn sale of 30‑year treasuries cleared at a hefty 5.216% yield, the highest since 2001.

The result underscored investor unease over US inflation risks and the country's swelling debt load, adding to the cautious tone across continental markets already grappling with geopolitical tensions and elevated energy prices.

Oil prices were on the rise again after the US threatened an indefinite naval blockade of Iran, renewing worries about supply of crude, adding to concerns about a weaker outlook for demand and a large build in US stocks. Brent crude rose 0.78% to $87.75 a barrel.

"Watch this space for more announcements coming next week because we are going to apply measures like have never been seen in the history of economic isolation of a country," Treasury Secretary Scott Bessent on Thursday told the right wing Newsmax's cable channel.

IG chief technical analyst Axel Rudolph said: "Oil markets are increasingly pricing in a prolonged supply shock, with crude above $81 a barrel and up 5% this week. The US escalation against Iran, stalled efforts to reopen the Strait of Hormuz and the IEA's warning of the largest global supply deficit in five years all point to further upside risks for oil."

"With shipping still dangerous and heightened geopolitical tensions across the region, prices will remain elevated until the Strait of Hormuz is fully reopened and global crude flows return to normal."

On the economics front, the eurozone economy ⁠grew 0.4% in the second quarter from the previous three months, in line with expectations.

In equity news, shares in VZ Holding jumped as the Swiss company posted better than expected first half revenue.

Reporting by Frank Prenesti for Sharecast.com