European markets open the week lower and travel stocks plunge as Iran peace hopes fade
European stocks started the new trading week on a somber note as global traders assess developments in the Middle East.
MikeTyes
A view of the vessels passing through Strait of Hormuz following the two-week temporary ceasefire reached between the United States and Iran on the condition that the strait be reopened, seen in Oman on April 8, 2026.
Shadi J. H. Alassar | Anadolu | Getty Images
LONDON — European stocks started the new trading week on a somber note as global traders assessed developments in the Middle East over the weekend.
The pan-European Stoxx 600 opened in negative territory, down 0.7%, with all major bourses sliding and most sectors, oil and gas excepted, in the red shortly after 8:00 a.m. in London (3:00 a.m. ET).
The U.K.'s FTSE index opened 0.6% lower, with the presence of major energy stocks helping to cushion losses seen elsewhere in the continent. Germany's DAX was almost 1% lower shortly after the opening bell, with France's CAC 40 down more than 1% and Italy's FTSE MIB 0.8% lower.
Travel and leisure stocks were among the worst hit, falling 2% at the open, with carriers Wizz Air, EasyJet and Lufthansa down 7.2%, 3.9% and 3.8%, respectively.
European bourses followed Asia-Pacific stocks lower on Monday as investors reacted to U.S. plans to blockade the Strait of Hormuz. The move was announced after talks between Washington and Tehran at the weekend failed to produce an agreement to end the Middle East conflict.
"Effective immediately, the United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz," Trump said in a post to his social media platform Truth Social on Sunday.
"The Blockade will begin shortly. Other Countries will be involved with this Blockade. Iran will not be allowed to profit off this Illegal Act of EXTORTION." Early Monday, Trump posted that the blockade on ships entering or exiting Iranian ports would begin at 10:00 a.m. ET (3 p.m. London time).
The breakdown of negotiations between Iran and the U.S. has reignited fears of a prolonged conflict as crude oil prices surged on Sunday.
European investors will also be keeping an eye on Hungary on Monday after long-term conservative leader Viktor Orban conceded defeat to Peter Magyar's pro-EU Tisza following the opposition party's landslide election win. The victory is a blow for Russia and the Trump administration, which saw an ally in eurosceptic Orban.
Earnings come from LVMH, Christian Dior and Galp Energia on Monday. There are no major data releases.
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