Global markets are facing a downturn after the US and Israel launched a large-scale attack on Iran over the weekend, with European equities expected to open significantly lower as the new trading week begins.
According to data from IG, the UK's FTSE index is projected to open 0.6% lower. Germany's DAX index is anticipated to drop 1.5% at the open, while France's CAC 40 is forecast to decline 1.4%. Italy's FTSE MIB index is expected to open 1.2% lower.
Markets worldwide are trading lower on Monday. The attack resulted in the death of Iran's Supreme Leader Ayatollah Ali Khamenei, with the US and Israel urging Iranian citizens to seize the opportunity to overthrow the current regime.
Iran has already launched retaliatory strikes against US military bases in the Middle East, resulting in the deaths of three American soldiers during the operation.
International oil prices surged more than 8% on Sunday due to market concerns over severe disruptions to crude supply.
US stock index futures fell sharply on Monday, with Asia-Pacific markets also experiencing significant declines. Airline stocks were hit hard as a result of Middle Eastern airspace closures and airport shutdowns.
The large-scale military action by the US and Israel was initiated on Saturday, following Iran's rejection of US demands to limit its nuclear program. The latest round of talks held last Thursday ultimately failed to yield an agreement.
In Europe, earnings reports from Bank of Ireland Group, Smith & Nephew, and Galp Energia are scheduled for release. Economic data to be published includes German retail sales figures and Italian GDP statistics.
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