European stocks fall sharply as conflict grips the Middle East; oil prices jump

March 2, 2026

TL;DR

European stocks, including major bourses, closed nearly 1.7% lower.
Norwegian oil and gas exporters Vår Energi and Equinor saw significant gains due to energy supply concerns.
European defense stocks closed mixed, with BAE Systems advancing and Saab slightly lower.
Travel and tourism companies like Carnival PLC, International Consolidated Airlines, TUI AG, and Lufthansa experienced sharp declines.
The conflict resulted in the death of Iran's Supreme Leader Ayatollah Ali Khamenei and U.S. service members.
Iran launched retaliatory strikes against U.S. bases, with further American casualties anticipated.
Oil prices surged, with Brent crude hitting a 52-week high amid fears of supply disruption through the Strait of Hormuz.
U.S. and Asia-Pacific markets also slumped, impacted by Middle East airspace disruptions.
The assaults followed Iran's refusal to curb its nuclear program and a failed round of talks.
Upcoming European earnings reports include Bank of Ireland Group, Smith & Nephew, and Galp Energia.

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