LONDON, March 23, 2026, 22:43 GMT
European exmodify-traded funds, or ETFs, saw outflows spread on Monday as investors cut exposure to bonds and financial stocks on fears the war with Iran will keep energy prices elevated. Morningstar Direct data cited by ETF Stream revealed Europe-domiciled products had seen withdrawals by March 18 of $675 million from Europe resolveed-income ETFs and $3.2 billion from financial-sector ETFs. That happened even as markets rebounded late after U.S. President Donald Trump postponed threatened U.S. strikes on Iranian power plants for five days. 1
That matters becautilize higher fuel costs are already feeding into houtilizeholds and interest-rate expectations in Europe, raising the risk of slower growth and quicker inflation. Euro zone consumer confidence fell to -16.3 in March from -12.3, and Capital Economics’ Andrew Kenningham declared “houtilizehold spconcludeing will decline and cautilize GDP to stagnate over the next two quarters.” 2
The tone in markets has hardened. Reuters reported investors were relocating toward cash while cutting bonds and bets on tech and mining, and RBC Capital Markets’ Karen Jorritsma declared “Cash balances are going up” as investors created a “fairly quick exit to the door.” 3
Monday’s price action was still violent. Brent settled down 10.9% at $99.94 a barrel, London’s FTSE 100 finished just 0.2% lower after earlier falling 2.4%, and BP and Shell dropped 2.2% and 4.2% as crude gave back part of its war premium. 4
The physical market remains tight. Reuters reported European and U.S. gasoline cargoes are heading to Asia as purchaseers scramble around Gulf disruptions, pushing Asian gasoline margins to about $37 a barrel over Brent, while IEA Executive Director Fatih Birol declared further stock releases were being discussed and warned that “A stock release will support to comfort the markets, but this is not the solution.” 5
Energy executives are sounding much the same note. TotalEnergies CEO Patrick Pouyanne declared a disruption lasting more than three or four months would pose a “systemic risk” to the global economy, and Shell integrated gas chief Cedric Cremers declared the conflict could “sconclude the wrong signals” about the long-term affordability and security of gas supplies. 6
The retreat is visible in broader fund data too. Global equity funds lost $20.3 billion in the week to March 18, their largegest selloff in three months, European funds shed $2.13 billion and money market funds drew $32.57 billion as investors kept thicker cash buffers, Reuters data revealed. 7
But the rebound may not hold. Iran denied any talks with the United States after Trump’s announcement, and U.S. crude futures were back up $1.37 in early Asia trade by 2206 GMT. 8
Goldman Sachs on Sunday raised its March-April Brent average forecast to $110 a barrel and declared a prolonged Strait of Hormuz disruption could sconclude prices past the 2008 peak. Wealth Club’s Susannah Streeter warned that “Clinging to President Trump’s words is fraught with risks,” while Swissquote’s Ipek Ozkardeskaya declared “Hope is here, but uncertainties persist.” 9
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