Vadimrysev | Istock | Getty Images
LONDON — European stocks are expected to start the new trading week heavily lower as traders track developments in the Middle East and a surge in oil prices.
The U.K.’s FTSE index is seen opening 0.9% lower while Germany’s DAX is seen down 2.67%, France’s CAC 40 down 2.3% and Italy’s FTSE MIB 2.7% lower, according to data from IG.
European investors are waking up to more turbulence in global markets on Monday as oil prices rose on Sunday to over $110 per barrel for the first time since 2022, when Russia invaded Ukraine.
The surge comes after major Middle Eastern oil producers Kuwait, Iran and the UAE cut oil production following the closure of the Strait of Hormuz.
Birds fly near a boat in the Strait of Hormuz amid the U.S.-Israeli conflict with Iran, as seen from Musandam, Oman, March 2, 2026.
Amr Alfiky | Reuters
U.S. President Donald Trump posted on Truth Social on Sunday that a gain in “short term oil prices” was a “very small price to pay” for destroying Iran’s nuclear threat. “Only fools would think differently!” Trump added.
Asia markets tumbled overnight and U.S. stock futures were plunging to start the week’s trading amid fears that higher energy prices could dramatically slow the U.S. economy.
In other news, Iran named Mojtaba Khamenei as its new Supreme Leader on Sunday, the Associated Press and Reuters reported, citing Iranian state media.
There are no major earnings or data releases from Europe on Monday.