Smoke rises following an explosion, after Israel and the U.S. launched strikes on Iran, in Tehran, Iran, March 1, 2026. Majid Asgaripour/WANA
Irish and European shares tumbled on Monday, after markets opened for the first time since the start of the war in Iran and wider Gulf region.
Bank of Ireland shares were down more than 4pc in early trading, Ryanair fell 3.50pc and every stock bar insurer FBD was lower on Monday.
That trend was seen across European markets with banking and airlines also tending to be worst hit. In London, Aer Lingus owner IAG’s shares fell 13pc.
News in 90 seconds – Monday, March 2
Stocks tumbled and oil prices jumped as the eruption of war between the US and Iran rattled global markets.
The Stoxx 600 index of European shares is down 1.6pc after hitting an all time high last week.
Gold and the dollar rose as investors piled into havens.
On oil markets Brent crude traded near $80 a barrel as the shipping lane through the the Strait of Hormuz that carries about a fifth of the world’s oil and significant volumes of gas effectively closed.
In Europe, wholesale gas prices surged as much as 25pc.
While recent markets turmoil has tended to be short lived analysts this time are warning that a war in the Middel East may nit fit that pattern.
Strategists at Barclays cautioned aagainst “buying the dip”.
The firm’s global chairman of research, Ajay Rajadhyaksha, cited the potential for US casualties, strikes on Iranian leadership and disruption to Hormuz traffic.
“The risk-reward doesn’t seem compelling,” he said. “If equities pull back enough (say over 10pc in the S&P 500), there is likely to come a time to buy. But not yet.”
The possibility of prolonged turmoil in the Middle East and the ripple effects of higher oil prices are giving money managers fresh reasons to sell equities and shift into safety. Rich valuations across global equities and credit also make it easier for investors to trim risk.
“This is all coming at a fragile time as investors are becoming more cautious,” said Dec Mullarkey, managing director at SLC Management. “US equity markets are already very sensitive to threats of technology disruption and emerging credit stress, so the prospects of higher commodity prices could force a selloff as investors rein in risk.”
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