Europe open: Shares slide again as Israel resumes Iran, Lebanon attacks

3rd Mar 2026 08:01

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

The pan-regional Stoxx 600 index was down 1.44% to 614 at 0805 GMT. Germany's DAX declined 1.83% lower, Britain's FTSE 100 1.11%, France's CAC 1.37% and Italy's MIB 2.05%.

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 nudged beyond $80 a barrel, rising 3.34% 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.

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.

Reporting by Frank Prenesti for Sharecast.com