Affected by the war in Iran, European stock markets may experience their largest weekly drop since April last year.

Due to the lack of any signs of an end to the Iran war, European stock markets are heading towards their worst single-week drop since April last year. The Stoxx Europe 600 index rebounded slightly on Friday, rising 0.2% at the time of writing, narrowing the weekly drop to 4.3%. With maritime traffic in the Strait of Hormuz basically at a standstill, Brent crude oil prices surpassed $85 per barrel, causing energy stocks to rise accordingly. As investors continue to weigh the impact of rising oil prices on inflation and interest rate prospects, the region's benchmark indices have experienced severe fluctuations. The conflict has entered its seventh day, with Iran launching a large number of missiles and drones towards at least five countries in the Middle East, while Israel conducted its twelfth round of airstrikes on Tehran. On the individual stock side, Zealand Pharma A/S saw a dramatic 32% drop in its stock price, marking its largest decline in history, due to the mid-term trial results of an experimental obesity injection developed in collaboration with Roche Holding AG falling short of expectations. A team led by Barclays Bank strategist Emmanuel Cau wrote in a report, "The de-risking process remains orderly, with little evidence of widespread panic selling." Thomas Woldbye, the CEO of Heathrow Airport, stated that the Iran war has brought "operational challenges" to the London aviation hub, resulting in the cancellation of hundreds of flights and a significant number of aircrafts being grounded, making International Airlines Group (IAG) stock a potential focus on Friday.