European markets set to start the week lower as Iran war intensifies

• European indices projected to open down 0.2% to 0.6%, with UK's FTSE down 0.2%, Germany's DAX down 0.6%, and France's CAC down 0.4%
• Brent crude prices jumped 2.58% to $102.19 per barrel following the weekend escalation and Trump's threats against Iran's key oil export infrastructure
• G7 finance ministers, energy ministers and central bank governors are convening virtually for the fourth ministerial-level meeting since the conflict began on February 28

SUMMARY: European Markets Face Pressure as Iran Conflict Escalates

European markets are projected to open lower on Monday, March 30, 2026, as the Iran war enters its fifth week with renewed escalation over the weekend. The UK's index is expected to decline 0.2%, while Germany's DAX is forecast down 0.6%, France's CAC down 0.4%, and Italy's index down 0.4%, according to IG data.

Key Developments:

President Donald Trump announced potential plans to seize Iran's Kharg Island, a critical export hub. Significantly, Yemen's Houthi movement launched its first direct attack in the conflict, firing ballistic missiles at Israeli military sites in support of Iran and Hezbollah forces in Lebanon. The Houthi spokesperson confirmed the strike via social media platform X.

Market Impact:

Oil prices surged in early Asian trading, rising 2.58% to $102.19 per barrel, reflecting supply concerns given the strategic importance of Kharg Island to Iran's oil exports. Asian-Pacific markets traded lower overnight, setting a negative tone for European sessions.

Timeline:

The conflict began February 28, 2026, with U.S. and Israeli airstrikes on Iranian targets. The war has now persisted for five weeks with intensifying regional involvement.

Policy Response:

G7 finance ministers, energy ministers, and central bank governors are convening virtually—marking the fourth ministerial-level meeting since hostilities began—to coordinate response strategies.

Economic Calendar:

Monday's data releases include EU economic sentiment indicators and Germany's latest inflation figures, which could provide additional market direction amid geopolitical uncertainty.

The escalation presents significant risk to energy markets and broader European equities, particularly energy-dependent sectors.