Global Markets | European shares fall to over two-month lows as Iran war drags on

European shares slumped to their lowest in over two months on Monday, as surging oil prices exacerbated inflation worries with ‌the U.S.- ⁠Israeli ⁠war on Iran showing no signs of slowing down.

The pan-European ​benchmark fell for the third session, down 2.34% at 585.08 points ​by 0810 GMT. The index fell 5.5% last week, marking it's worst week in nearly a year.

Oil surged ​more than 25% with prices ⁠just shy ‌of $120 a barrel, as concerns over drawn ​out ​shipping and supply disruptions gripped markets due ⁠to an expanding conflict in the Middle East.


Iran named ​Mojtaba Khamenei to succeed his father ​Ali Khamenei as supreme leader, signalling that hardliners remain firmly in charge in Tehran.

In Europe, banks, which were in the epicenter of the sell-off last week, extended declines with a 3.2% fall.

Tech stocks fell ‌3.1%.

Carriers Lufthansa and Air France KLM fell 3.9% and 5.2%, respectively.

On the flip side higher ​crude ​prices pushed energy 0.1% ⁠higher, while defense firm Leonardo added 1.4%.

Attention now turns to comments by ECB President Christine Lagarde while board member ​Piero Cipollone and euro zone finance ministers are due to speak at Eurogroup meeting later in the day.

Data showed German industrial orders fell more than expected month-on-month in January.