BlackRock’s chief investment officer Helen Jewell warned that surging energy costs and compressed valuations have made European equities less appealing. She noted a 12% decline in the Stoxx Europe 600 since the Iran conflict began, contrasting with the S&P 500’s smaller 8% drop. Jewell cited soaring oil prices and tighter consumer spending as key pressures, forcing her team to reduce bullish bets on Europe. “The valuation gap with U.S. stocks has closed,” she said, signaling a shift from earlier optimism. Healthcare, luxury, and industrial sectors—previously expected to rebound—now face renewed headwinds from inflation and borrowing costs.