European stocks set to slump as markets react to U.S., Israeli strikes on Iran

In this article Follow your favorite stocks CREATE FREE ACCOUNT Plumes of smoke rise following reported explosions in Tehran on March 1, 2026, after Iran's supreme leader, Ayatollah Ali Khamenei, was killed a day earlier in a large U.S. and Israeli attack, prompting a new wave of retaliatory missile strikes from Iran. Mowj | Afp | Getty Images LONDON — European stocks are expected to start the new trading week firmly in negative territory as global markets drop after the U.S. and Israel launched widespread attacks on Iran at the weekend. The U.K.'s FTSE index is seen opening 0.6% lower, Germany's DAX down 1.5%, France's CAC 40 down 1.4% and Italy's FTSE MIB 1.2% lower, according to data from IG. Global markets are all lower Monday. The strikes have left the Islamic Republic's Supreme Leader Ayatollah Ali Khamenei dead, with the U.S. and Israel urging Iranian citizens to seize the opportunity to overthrow the regime. Iran has launched retaliatory strikes against U.S. bases in the Middle East region, and three U.S. service members have been killed in the operation. Crude oil prices jumped more than 8% Sunday as market participants fear a major supply disruption. U.S. stock futures tumbled Monday morning and Asia-Pacific markets also slumped, with airline stocks seeing sharp losses amid Middle East airspace disruptions and airport closures. The large-scale U.S. and Israeli assault was launched on Saturday after Iran refused U.S. demands to curb its nuclear program and another round of talks, held last Thursday, ended without a deal. Read more Live updates: Iran security chief Ali Larijani rejects U.S. talks, blames Trump for 'chaos' Iran conflict: Where things stand, global responses — and what comes next Airlines cancel hundreds of flights after U.S., Israeli attacks on Iran Earnings in Europe come from Bank of Ireland Group, Smith & Nephew and Galp Energia, while data releases include German retail sales and Italian GDP figures. Subscribe to CNBC PRO Subscribe to Inv...