Oil and Gas Jump, European Stocks Hit One-Month Low as US-Iran Clash Resumes

European equities stayed stuck near a one-month low in the September 2 session after the United States and Iran resumed hostilities, according to the Financial Times. The renewed conflict pushed European gas prices to their highest level this year and sent oil prices higher, feeding fears of a wider regional war. The FTSE 100 slipped as the oil price rise weighed on sentiment, while Investing.com reported European shares broadly holding at one-month lows amid what it called a "global yield surge squeeze." Government bond yields near 5% are making borrowing costs more expensive at the same time energy costs are rising, a combination that hits corporate margins and consumer spending together. What remains unresolved is how far the conflict spreads and whether it disrupts actual oil and gas supply routes, rather than just pricing in risk. Traders are also watching Federal Reserve data for signs of how the central bank will respond to inflation pressure from higher energy costs.