Escalation Fears Weigh on European Markets [US-Iran War]

UK FTSE Index Expected to Open Down 0.7%

Belgium European Union Headquarters. Photo by Reuters and Yonhap News

According to CNBC, a leading U.S. business media outlet, major European stock markets are expected to show a clear downward trend on March 3, 2026.

The outlet, citing IG data, reported that the UK FTSE index is expected to open down 0.7%, the German DAX index down 1%, the French CAC40 index down 0.75%, and the Italian FTSE MIB index down 0.6%.

Concerns over an escalation in the global markets have grown as the conflict between the United States and Iran has spread throughout the Gulf region.

International oil prices also surged the previous day due to concerns that the U.S.-Iran conflict could disrupt oil infrastructure and drive up prices. This has been cited as a factor increasing additional inflation risks.

According to the Wall Street Journal (WSJ), the U.S. State Department announced that two drones struck the U.S. Embassy in Riyadh, Saudi Arabia, on the night of March 2, 2026. The Saudi Arabian Ministry of Defense also officially confirmed this fact.

The Islamic Revolutionary Guard Corps (IRGC) of Iran is also maintaining its policy of closing the Strait of Hormuz, a key oil shipping route. Reuters, citing local Iranian media, reported that Brigadier General Ebrahim Javari, advisor to the IRGC Commander-in-Chief, declared that "all ships attempting to pass through the Strait of Hormuz will be burned."

On this day, earnings announcements for the 2025 fiscal year are scheduled for Thales, Alcon, ASM International, Kuehne+Nagel International, and Schaeffler. Additionally, the flash inflation data for the eurozone in February is set to be released, with the inflation rate expected to remain at around 1.7%.

Meanwhile, major Asian stock markets closed lower on March 3, 2026. The Nikkei index ended the session at 56,279, down approximately 3.06% from the previous trading day. The KOSPI index closed at 5,791.91, down 7.24%.

This content was produced with the assistance of AI translation services.