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Europe Shares Set for Third Straight Weekly Loss as Mideast War Grinds On

Published by Global Banking & Finance Review®

Posted on March 20, 2026

2 min read

Last updated: March 20, 2026

Europe shares set for third straight weekly loss as Mideast war grinds on - Finance news and analysis from Global Banking & Finance Review

Tags:Finance Banking Markets

Quick Summary

Europe’s STOXX 600 rose 0.8% on Friday but is on track for a third straight weekly drop—the longest losing streak since April 2025—as Middle East conflict and elevated oil prices stoke inflation concerns and ECB rate-hike odds. Unilever gained on news it is in talks to sell its foods business.

Europe Shares Set for Third Weekly Loss as Middle East Crisis Impacts Markets

Market Overview and Key Developments

STOXX 600 Performance and Sector Movements

March 20 (Reuters) - Europe's STOXX 600 edged higher on Friday, but was set for a third consecutive weekly loss, as an expanding Middle East conflict and a surge in oil prices reinforced inflation fears and increased the odds of a rate hike from the European Central Bank.

The pan-European STOXX 600 was up 0.8% at 588.37 points by 0805 GMT, with the heavyweight financial sector providing the biggest boost, while energy sector declined 0.7% as crude prices pulled back. [O/R]

Weekly Loss Streak

The benchmark is down 1.1% so far this week. A three-week loss would be its longest such streak since April 2025.

Geopolitical Tensions and Economic Impact

Middle East Conflict Escalation

Israel launched fresh attacks on Iran a day after President Donald Trump told it not to repeat its strikes on Iranian natural gas infrastructure.

European Central Bank Policy Response

The European Central Bank kept the policy rate unchanged on Thursday, but policymakers expect to discuss hikes in the coming months as the Iran war pushes up inflation in the euro zone.

Company News

Unilever’s Strategic Moves

Talks with McCormick & Company

Among individual stocks, Unilever shares added 1.2% after the consumer goods group confirmed it was in talks with U.S.-based McCormick & Company about selling its foods business.

(Reporting by Avinash P in Bengaluru; Editing by Harikrishnan Nair)

Key Takeaways

•STOXX 600 up 0.8% on Friday; set for third straight weekly loss and longest slide since April 2025 (uk.finance.yahoo.com)
•Middle East war continues to push up oil prices, reinforcing inflation fears and increasing likelihood of ECB rate hikes (uk.finance.yahoo.com)
•Unilever shares rose after confirming talks with McCormick to sell its foods business (reddit.com)

References

Frequently Asked Questions about Europe shares set for third straight weekly loss as Mideast war grinds on

1Why are European shares set for a third consecutive weekly loss?

European shares are facing a third straight weekly loss due to escalating Middle East conflict and rising oil prices, raising inflation concerns.

2How has the Middle East conflict impacted European markets?

The expanding Middle East war has pushed up oil prices, stoking inflation fears and increasing the odds of an ECB rate hike.

3What sectors are influencing the European stock market this week?

The financial sector provided the biggest boost to the market, while the energy sector declined as crude prices pulled back.

4What was the European Central Bank's latest policy decision?

The European Central Bank kept its policy rate unchanged, but policymakers are expected to discuss hikes in the coming months.

5Which stocks were notable in recent European market activity?

Unilever shares rose after confirming talks to sell its foods business to McCormick & Company.