European Stocks Plunge to Worst Month Since 2020 Amid Iran Conflict Uncertainty
European markets are heading toward their worst monthly performance since early 2020, with March trading marred by uncertainty over the ongoing conflict in Iran. The pan-European Stoxx 600, after briefly dipping below its opening levels, clawed back slightly by early Tuesday trading but remains on track for an 8.5% monthly drop, echoing the turbulence seen during the early stages of the Covid-19 pandemic.
Despite early signs of recovery, major European indices posted mixed gains as investors reacted cautiously. France’s CAC 40 rose 0.40% to 7,803 points, Germany’s DAX climbed 0.52% to 22,679, while the UK’s FTSE 100 gained 0.65% to 10,193. The broader Stoxx Europe 600 ended the morning session up 0.56%, reflecting uneven sentiment across sectors and regions.
The volatility comes amid rising concern over U.S.-Iran tensions. Reports suggested that former U.S. President Donald Trump aimed to avoid a prolonged Middle East conflict, even if strategic chokepoints like the Strait of Hormuz remained closed. Meanwhile, U.S. Secretary of State Marco Rubio indicated that Washington’s military objectives in Iran could be achieved in weeks rather than months, fueling market speculation on geopolitical stability.
Energy markets mirrored investor caution, with oil prices climbing on Tuesday morning after falling overnight. The increase followed Trump’s warning to potentially target Iran’s civilian energy infrastructure if the country failed to reopen the Strait of Hormuz, highlighting the fragile balance between military strategy and global energy security.
Amid the geopolitical uncertainty, corporate news offered a rare positive note. Consumer goods giant Unilever revealed advanced talks to merge its foods business with U.S. spice maker McCormick, in a deal valued at roughly $15.7 billion in cash and equity. If completed, Unilever shareholders would control 65% of the combined company, signaling ongoing consolidation in the global food sector despite broader market turbulence.
source: cnbc