Europe midday: Shares slump as oil hits $100 amid US-Iran military escalation

(Sharecast News) - European shares slumped on Wednesday as oil hit $100 a barrel after the US sank five Iranian tankers and Tehran responded with missile strikes on American bases in Jordan.

The pan-regional Stoxx 600 index was down 1.27% to 641 at 1035 GMT with all major bourses lower. Brent crude rose 2.6% to $100.50 a barrel.

US Central Command on Tuesday night said it had destroyed five Iranian oil tankers in response to recent attempts to attack American warships with ballistic missiles.

Jordan on Wednesday reported that its military had intercepted 18 Iranian missiles and reported no casualties. Iran's Revolutionary Guard said it fired ballistic missiles at the Jordanian base and attacked 10 ships on Wednesday.

Oil majors all gained in line with the rising oil price as the escalation heightened fears of a supply crisis. Equinor, Repsol, Galp, Eni and BP were all higher.

Zara owner Inditex fell despite reporting a stronger-than-expected start to its autumn trading.

Reporting by Frank Prenesti for Sharecast.com