AdvertisementAdvertisementTraders work on the floor of the New York Stock Exchange during morning trading on Mar 18, 2026 in New York City. (Photo: Getty Images via AFP/Micheal M. Santiago)19 Mar 2026 01:51AM (Updated: 19 Mar 2026 01:53AM) Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInAdd CNA as a trusted source to help Google better understand and surface our content in search results.Read a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST LONDON: European shares halted their ascent on Wednesday (Mar 18) after an attack on Iran's Pars gas field pushed oil prices higher and renewed fears of escalation in the Middle East, shattering the calm since the beginning of the week.The pan-European STOXX 600 declined 0.70 per cent to 598.25 after gaining as much as 0.67 per cent earlier in the session, ending a two-day winning streak.The attack on Pars was the first reported strike on Iranian energy infrastructure in the Gulf during the US-Israeli war, and prompted Tehran to warn its neighbours that their energy installations would be targeted "in the coming hours"."Up to now, energy infrastructure had been sort of off-limits. But this escalation brings back the risk that markets have been trying to forget," said Michael Brown, senior research strategist at Pepperstone."There is a degree of optimistic bias in the market because everyone is still expecting that we get some sort of U-turn from (US President Donald) Trump, but what we've seen today is another wake-up call that it is not a given."The market moves show how reactive investor sentiment remains to developments in the Middle East, undermining hopes that stocks may have found a floor, especially in oil import-reliant Europe.Brent crude futures rose 4.75 per cent to US$108.33 a barrel, while US West Texas Intermediate crude jumped 1.89 per cent to US$98.03.CENTRAL BANKS IN FOCUSInvestors will also parse commentary from Federal Reserve Chair Jerome Powell on Wednesday, while European Central Bank President Christine Lagarde is scheduled to speak later in the week.Both central bank chiefs are expected to lay out their outlook for interest rates, which could offer investors fresh clues on positioning."They are going to try and be as non-committal as they possibly can. I don't think either of them is going to want to box themselves into a particular policy path at this point," Brown said.Consumer staples stocks slipped 2.72 per cent and were the biggest drag on the benchmark, while healthcare companies also fell 2 per cent.Banks were insulated from the selloff, rising 1.22 per cent for their third straight day of gains.Among individual movers, computer peripherals maker Logitech fell 6.07 per cent. UBS downgraded the stock to "neutral" from "buy", while lowering its price target.Diploma jumped 17.79 per cent to a record high after it raised fiscal 2026 guidance.Oil up again in Asian trade, with focus on Iran warWhy convoys cannot fully protect oil tankers from Iran attacksSource: Reuters/fsNewsletterWeek in ReviewSubscribe to our Chief Editor’s Week in ReviewOur chief editor shares analysis and picks of the week's biggest news every Saturday.Sign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST