Citigroup strategists say that against the backdrop of escalating geopolitical tension, gas prices continue to rise, and the risks facing the European stock market are increasing. The team, led by Beata Manti, said that cyclical sectors such as automobiles, travel and leisure, chemicals, and banks, as well as high-energy sectors, often outperform the market when natural gas prices soar. The strategist wrote in the research report that commodities, defensive sectors, and some growth sectors will perform relatively well. Despite this, the stock market and the European economy are “less sensitive to gas prices than during the 2022 energy shock period.” The bank's commodity strategist believes that under the assumption that navigation in the Strait of Hormuz will resume, combined with different climate scenarios in winter, natural gas prices are expected to fall by the end of the year.

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