EUROPEAN SHARES TUMBLE – Following Israel-Iran tensions flare, set for weekly losses
European markets slid to a three-week low on Friday, as rising tensions between Israel and Iran rattled investors and pushed them toward safer assets.
The pan-European STOXX 600 dropped 0.6%, heading for its fifth straight day in the red — the longest losing streak since last September.
The selloff came after Israel launched strikes on Iranian military targets, including nuclear and missile sites. Iran responded by firing over 100 drones, fueling fears of further escalation in the Middle East.
The renewed conflict added to the pressure already weighing on global markets due to U.S. trade tensions and President Trump’s ongoing tariff policies.
Oil prices surged more than 7%, hurting travel stocks. The travel and leisure sector fell over 2%, with British Airways owner IAG, Lufthansa, and EasyJet all down by more than 3%.
Several airlines rerouted or suspended flights over the region, with Lufthansa halting all services to and from Tehran. Cruise operator Carnival also saw shares drop nearly 5%.
In contrast, energy stocks rose as oil prices climbed. BP jumped 2.6%, while Shell was up nearly 2%.
Market volatility hit its highest level since late May, and Germany’s DAX also dropped 1.2%, despite fresh data showing German inflation eased to 2.1% in May.
