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Europe midday: Shares slump as Iran war escalates; Oil, gas prices spike

Tue 03 March 2026 11:47 | A A A

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(Sharecast News) - European shares slumped on Tuesday as Israel and the US continued their war against Iran with renewed attacks on Tehran and neighbouring Beirut, fuelling fears of a broader conflict and sending oil and gas prices spiking.

The pan-regional Stoxx 600 index was down 3.12% to 604.28 at 1152 GMT. Germany's DAX and Italy's MIB declined by almost 4%, Britain's FTSE 100 2.63%, France's CAC 2.9%.

US stocks rebounded off their lows but still finish mixed on Monday, as the war limited upside on Wall Street as oil prices surged to eight-month highs.

The crude oil price surged 8% to $84 while gas prices were also higher after Qatar shut down a key LNG facility in response to drone attacks.

Tankers continued to be stranded either side of the vital Strait of Hormuz as Iran's Revolutionary Guard warned any boat would be fired upon. Meanwhile a drone strike temporarily halted production at Saudi Arabia's largest facility, heightening fears of supply disruption.

Oil stocks made further ground on Monday's rally, with Equinor, Repsol, BP and TotalEnergies among the gainers.

Israel on Tuesday said it was attacking targets in Iran and Lebanon, where the Hezbollah militia has been launching missiles towards neighbouring Gulf states and also US and UK bases in Cyprus.

With no clear reason for the start of the war nor its ultimate aim, analysts fear a prolonged conflict could cause a long-term spike in energy prices and refuel global inflation.

In other equity news, Beiersdorf slumped as the German manufacturer forecast lower net sales and margins for 2026, while car dealer Inchcape fell as it warned 2026 volumes would be at the lower end of forecasts due to ongoing weakness in the premium Asia market.

Testing and inspection specialist Intertek Group also tumbled despite forecasting further earnings growth following a jump in annual sales and profits.

Reporting by Frank Prenesti for Sharecast.com

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