economy
March 3, 2026
European stocks close 3% lower as Middle East conflict intensifies
European stocks ended firmly in negative territory Tuesday as the geopolitical crisis in the Middle East continued to weigh on market sentiment.
TL;DR
- European stocks, tracked by the Stoxx 600, fell 3.2% on Tuesday, extending Monday's losses.
- All major sectors experienced sell-offs, including banking, insurance, utilities, and defense.
- Travel and leisure stocks dropped 2% due to airspace closures and flight cancellations in the Middle East.
- Global crude oil prices surged for the second day amid concerns over potential disruptions to oil infrastructure.
- An Iranian Revolutionary Guard commander stated the Strait of Hormuz is closed.
- Inflation in the euro zone rose to 1.9% in February, with potential energy price volatility noted.
- French defense giant Thales reported strong full-year earnings, with orders matching the previous year's record.
- British investment manager Aberdeen expected its full-year operating profit to be in line with market expectations, despite a drop in its share price.
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