Strikes in Iran: European Markets Plunge as Energy and Defense Surge

European markets opened sharply lower, shaken by the airstrike carried out by the United States and Israel against Iran, which decimated much of the regime's top leadership. The military response rekindles geopolitical tensions and triggers significant sectoral shifts on the stock exchange.

Rising
Energy: Oil companies are boosted by the surge in crude prices. Shell, BP, and TotalEnergies soar by 6%. Equinor jumps by 8%.

Defense: This is the only other sector clearly standing out: Rheinmetall, Thales, and Dassault Aviation gain 4% at the open. However, Rolls-Royce and Safran are losing ground: their exposure to civil aviation is holding them back.

Gold miners: The rise in risk aversion benefits precious metals and their producers, such as Fresnillo.

Falling
Air transport: The combination of suspended routes, longer international flights (to avoid dangerous zones), and higher kerosene prices is an explosive mix. Air France-KLM, Lufthansa, and International Consolidated Airlines are plunging.

Luxury: Less international tourism and a less buoyant economy mean lower revenues for the sector. LVMH, Hermès, and their peers are suffering.

Finance: Banking stocks are losing more ground than average this morning. Once again, it is because geopolitical tensions translate into economic strains. This does not favor financial companies.