Plumes of smoke rise following reported explosions in Tehran on March 1, 2026, after Iran’s supreme chief, Ayatollah Ali Khamenei, was killed a day earlier in a big U.S. and Israeli assault, prompting a brand new wave of retaliatory missile strikes from Iran.
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LONDON — European shares had been firmly in unfavorable territory as world markets dropped after the U.S. and Israel launched widespread assaults on Iran on the weekend.
The pan-European Stoxx 600 was down 1.9% at 2:30 p.m. in London (9:30 a.m. ET), with main bourses and nearly all sectors in unfavorable territory.
Norwegian oil and gasoline exporters Vår Energi and Equinor had been up 7% and 11% respectively, as considerations over world vitality provides grew.
European protection shares had been additionally larger. Italian aerospace staple Avio rose almost 1%, Britain’s BAE Systems superior roughly 5% and Swedish fighter jet maker Saab gained nearly 4%. Italy’s Leonardo was up 3.4% and Germany’s Renk rose 2.5%.
Companies linked to the journey and tourism sector slumped as world disruption continued Monday. Carnival PLC, the Anglo-American cruise line operator, was down almost 9%, and International Consolidated Airlines was almost 6% decrease. TUI AG dropped 9.7%, and Lufthansa misplaced 2.3%.
The strikes on Iran killed the nation’s Supreme Leader Ayatollah Ali Khamenei, with the U.S. and Israel urging Iranian residents to grab the chance to overthrow the regime.
Iran has launched retaliatory strikes towards U.S. bases within the Middle East area, and three U.S. service members have been killed within the operation.
U.S. Defense Secretary Pete Hegseth mentioned on Monday that extra American casualties ought to be anticipated. “War is hell,” Hegseth mentioned. Air Force Gen. Dan Caine, chairman of the Joint Chiefs of Staff, reiterated at a briefing that it will not be a “single overnight operation” and there might be “additional losses.”
Oil costs continued to surge on Monday as merchants feared a serious provide disruption via the Strait of Hormuz. International benchmark Brent crude costs hit a brand new 52-week excessive and had been final up 8.6% to achieve $79.15.
U.S. stocks tumbled on Monday and Asia-Pacific markets additionally slumped, with airline shares seeing sharp losses amid Middle East airspace disruptions and airport closures.
The large-scale U.S. and Israeli assault was launched on Saturday after Iran refused U.S. calls for to curb its nuclear program, and one other spherical of talks, held final Thursday, ended with no deal.
Earnings in Europe come from Bank of Ireland Group, Smith & Nephew and Galp Energia, whereas knowledge releases embrace German retail gross sales and Italian GDP figures.
