The Iran-flagged container vessel “Nora”, in Kalundborg harbor, Denmark, March 18, 2026. The vessel was detained by Denmark’s maritime authority in February over registration concerns.
Jens Nielsen | Via Reuters
LONDON — European stocks followed Asian markets sharply lower at the start of the new trading week, as further escalation in the Iran war drags on global market sentiment.
The pan-European Stoxx 600 was 1.6% lower shortly after 8:00 a.m. in London (4:00 a.m. E.T.), with all major bourses and sectors firmly in negative territory.
The U.K.’s FTSE 100 index opened 1.4% lower, with Germany’s DAX down 1.9%, France’s CAC 40 down 1.4% and Italy’s FTSE MIB down 1.6%.
Europe’s slide, which followed a sell-off in Asian markets on Monday, came as concerns deepen over the Iran war and the blockage of vital maritime passage, the Strait of Hormuz.
U.S. President Donald Trump said Saturday that he would “obliterate” Iran’s power plants if Tehran failed to fully reopen the Strait within 48 hours
Iran responded by escalating threats to target energy infrastructure and desalination facilities in the Gulf. Iranian Parliament speaker Mohammad Bagher Ghalibaf also said Saturday that entities that purchase American government bonds and “finance the U.S. military budget” would be considered legitimate targets, alongside military bases.
Crude prices whipsawed in volatile trading earlier Monday, with global benchmark Brent rising 1.6% to $113.99, while Asia-Pacific markets traded lower. U.S. stock futures edged lower on Monday with sentiment knocked after the major U.S. benchmarks posted their fourth-straight weekly loss.
Earnings reports in Europe come from Kongsberg Gruppen, Exor and Galp Energia. Spain trade balance data will also be released.
— CNBC’s Anniek Bao contributed to this market report.
