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European Stocks Plunge 8% Amid U.S.-Israel-Iran Tensions

4/2/2026

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Story summary
  • European stocks fell 8% in March, their largest monthly decline in nearly four years amid the U.S.-Israel conflict with Iran.
  • The Stoxx Europe 600 declined 1.5% year-to-date and posted its first quarterly decline in five quarters.
  • The market rose 0.4% after U.S. President Donald Trump indicated a willingness to end military actions.
  • Investors cited inflation pressures from Strait of Hormuz disruptions, while Unilever fell 7.3% and UBS rose 4%.