European Markets Drop 1% After Israel Strikes Iran

Bridgette Randall
13 Jun, 2025
London

Benchmark indexes across Europe fell sharply after Israel conducted military strikes deep into Iran, raising the prospects of a wider war in the Middle East. 

Market indexes in Frankfurt, Paris, Milan, and London declined more than 1%, and energy and defense stocks gained while travel and leisure stocks traded down. 

Israel confirmed that it conducted multiple strikes deep into Iran and attacked nuclear infrastructure and military installations. 

The attacks on early Friday also killed at least three top military generals and several leading nuclear scientists, according to local reports in Tel Aviv and Tehran. 

Crude oil prices and gold advanced, and bond yields edged lower after investors sought safety in precious metals and government bonds. 

 

Europe Indexes and Yields

The DAX index decreased by 1.4% to 23,444.05, the CAC-40 index edged lower 1.2% to 7,674.59, and the FTSE 100 index declined 0.6% to 8,835.31.

The yield on 10-year German bonds inched lower to 2.47%, French bonds increased to 3.19%, UK gilts moved up to 4.51%, and Italian bonds edged higher to 3.44%.

The euro decreased to $1.15; the British pound was lower at $1.36; and the U.S. dollar was higher and traded at 81.08 Swiss cents.

Brent crude increased $3.55 to $72.90 a barrel, and the Dutch TTF natural gas was higher by €0.83 to €37.22 per MWh.

 

Europe Stock Movers

Thales SA advanced 0.6% to €251.10, Rheinmetall AG advanced 1.2% to €1,773.50, MTU Aero Engines AG declined 1.1% to €341.50, and Safran SA fell 1.6% to €253.90. 

BP plc advanced 2.2% to 389.30, Repsol SA gained 1.3% to €12.48, TotalEnergies SE inched higher 2.2% to €55.87, and Shell PLC gained 1.6% to €31.40.