How European stocks reacted to the U.S.-Israeli strikes on Iran

Market Overview - European stock markets opened lower, with the stock 600 index dropping approximately 1.5% due to geopolitical tensions in the Middle East, particularly the military operation in Iran [2][3]. Sector Performance - The oil and gas sector saw a significant boost, with Brent crude and light crude prices rising by 8% to 9% in Asia, benefiting companies like BP and Shell [4][7]. - Basic resources, utilities, and food and beverage sectors experienced slight declines but fared better than other sectors, while bank stocks led the decline, down 3.7% [5][6]. - Financial services, construction, materials, and media sectors also reported significant losses [6]. Regional Insights - The CA Karon index fell more than 2.3% in early trading, with the Footsie in Milan and London also trading lower [6]. - Airline stocks faced declines due to massive disruptions, with thousands of flights canceled or diverted, particularly affecting operations at Dubai airport [8]. Shipping and Insurance - Shipping prices are expected to rise due to difficulties in navigating the Middle East, with some marine insurers adding risk surcharges or refusing to insure against war risks [9]. Defense Sector - Defense shares increased in response to military interventions and expectations of heightened activity in the defense sector [10].