The Danish C25 index fell by around two percent on Monday morning. This comes after a weekend in which US President Donald Trump threatened to destroy Iran's power plants if the country does not open the Strait of Hormuz within 48 hours.
Trump shared the threat on his social media, Truth Social, on Sunday night at 00:44 Danish time. This means that the 48 hours will expire immediately at 00:44 on Tuesday night.
Iran's Revolutionary Guard has stated that it will retaliate against attacks on the country's electricity sector by attacking Israeli power plants and power plants that supply power to US bases in the Middle East.
Half an hour after the start of trading, all shares in the C25 index are in the red except for the jewelry company Pandora, which rose more than four percent, and Novonesis, which rose just over zero percent. Zealand Pharma is at the bottom of the index, down about five percent.
C25 is the leading Danish stock index. The index is composed of the 25 most traded stocks on the Copenhagen Stock Exchange measured by turnover. Fluctuations in the share prices of the largest companies have a greater impact on the overall development of the index than fluctuations in the smaller companies.
Middle East conflict has affected the market
The United States and Israel launched a comprehensive attack on Iran on February 28. Iran has responded by attacking targets in Israel and American targets elsewhere in the Middle East. As a result of the war, Iran's Revolutionary Guard has taken control of the Strait of Hormuz, which is a strait between Iran and Oman.
The strait is approximately 60 kilometers wide at its narrowest point and connects the Persian Gulf with the Gulf of Oman and the rest of the world's oceans. Under normal circumstances, about a fifth of all crude oil and liquefied natural gas passes through the Strait of Hormuz.
The closure of the strait has therefore caused oil and gas prices to rise. Attacks on oil refineries, gas fields and natural gas facilities around the Persian Gulf have also pushed prices up.
Since the initial attacks on Iran on February 28, the C25 index has fallen about eight percent. The index has fallen 11 out of 16 trading days.
/ritzau/
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