European Markets Slide After Israel Strikes Iran

European stocks fell to multi-week lows after Israel launched large-scale attacks on Iran's nuclear and military facilities, driving up oil prices and sending investors toward safe-haven assets like gold and the U.S. dollar. The market downturn was intensified by ongoing concerns about U.S. trade policy and slowing global growth. Major airlines, including Lufthansa and IAG, suspended or diverted flights over the Middle East, deepening losses in the travel and leisure sector, while energy and defense stocks rallied on higher oil prices and increased security risks. Key indices such as the STOXX 600 and Germany's DAX dropped over 1%, with market volatility reaching multi-week highs. Analysts noted that markets often rapidly price in and discount geopolitical risks unless escalation continues. A weaker euro and more cautious central bank outlooks reflect investor anxiety over inflationary pressures from rising energy prices.