Finance
European Shares Fall Again as Middle East War Drags On
Published by Global Banking & Finance Review®
Posted on March 3, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleGlobal Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on March 3, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleEuropean stocks slipped again on March 3 amid lingering Middle East conflict, surging oil prices due to the effective closure of the Strait of Hormuz, and renewed warnings of inflation and slower euro‑zone growth.
March 3 (Reuters) - European shares extended their decline on Tuesday as the global equity selloff deepened, as investors grappled with the prospect of a drawn-out Middle East war, and a sharp jump in oil prices led to fears of a rise in the cost of living.
The pan-European STOXX 600 was down 1.3% at 615.72 points by 0804 GMT, after closing at the lowest level in more than two weeks on Monday.
The utilities index and banks led sectors lower with 2.6% declines each, while energy climbed marginally, adding to the previous session's gains.
U.S. President Donald Trump sought to justify a broad, open-ended war on Iran, saying the stated aims of the conflict had shifted.
An official from Iran's Revolutionary Guards said the Strait of Hormuz is closed and any vessel trying to pass would be targeted, pushing up global oil and gas shipping rates.
European Central Bank Chief Economist Philip Lane told the Financial Times a long war could massively put upward pressure on inflation and reduce growth rate in the euro zone.
Among individual stocks, Thales gained 0.7% after the French aerospace and technology firm reported a slightly higher-than-expected annual core profit.
(Reporting by Avinash P and Pranav Kashyap in Bengaluru; Editing by Mrigank Dhaniwala)
European shares are falling due to concerns about a prolonged Middle East war and rising oil prices, which have led to a broader global equity selloff.
The STOXX 600 index dropped 1.3% and reached its lowest level in over two weeks, reflecting growing market uncertainty.
The utilities and banking sectors led declines, both falling 2.6%, while the energy sector saw marginal gains.
The conflict has led to the closure of the Strait of Hormuz, raising global oil and gas shipping rates and pushing oil prices higher.
The ongoing war could push inflation higher and slow economic growth in the euro zone, according to the European Central Bank's Chief Economist.
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