LONDON — European stocks opened the new trading week firmly in negative territory as global markets dropped after the U.S. and Israel launched widespread attacks on Iran at the weekend.
The pan-European Stoxx 600
Norwegian oil and gas exporters Vår EnergiEquinor
European defense stocks also made a strong advance in early trade, with Italian aerospace staple AvioBAE SystemsSaab gained almost 7%, while Italy’s LeonardoRenk
Companies linked to the travel and tourism sector slumped as global disruption continued Monday. Carnival PLC, the Anglo-American cruise line operator, shed 7.6%, as International Consolidated Airlines tumbled 7.3%, TUI AG dropped more than 6.7%, and Lufthansa
The strikes on Iran have left the country’s Supreme Leader Ayatollah Ali Khamenei dead, with the U.S. and Israel urging Iranian citizens to seize the opportunity to overthrow the regime.
Iran has launched retaliatory strikes against U.S. bases in the Middle East region, and three U.S. service members have been killed in the operation.
Crude oil prices jumped more than 8% Sunday as market participants fear a major supply disruption. U.S. stock futures tumbled Monday morning and Asia-Pacific markets also slumped, with airline stocks 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. demands to curb its nuclear program and another round of talks, held last Thursday, ended without a deal.
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Earnings in Europe come from Bank of Ireland Group, Smith & Nephew and Galp Energia, while data releases include German retail sales and Italian GDP figures.
