March 3 (Reuters) - European shares extended their decline on Tuesday as the global equity selloff deepened, as investors grappled with the prospect of a drawn-out Middle East war, and a sharp jump in
European Shares Extend Losses as Middle East Conflict Drives Oil Surge
Market Reactions to Middle East Tensions and Oil Price Surge
March 3 (Reuters) - European shares extended their decline on Tuesday as the global equity selloff deepened, as investors grappled with the prospect of a drawn-out Middle East war, and a sharp jump in oil prices led to fears of a rise in the cost of living.
Stock Market Performance
The pan-European STOXX 600 was down 1.3% at 615.72 points by 0804 GMT, after closing at the lowest level in more than two weeks on Monday.
Sector Movements
The utilities index and banks led sectors lower with 2.6% declines each, while energy climbed marginally, adding to the previous session's gains.
Geopolitical Developments
U.S. President Donald Trump sought to justify a broad, open-ended war on Iran, saying the stated aims of the conflict had shifted.
Impact on Oil and Shipping
An official from Iran's Revolutionary Guards said the Strait of Hormuz is closed and any vessel trying to pass would be targeted, pushing up global oil and gas shipping rates.
European Central Bank Response
European Central Bank Chief Economist Philip Lane told the Financial Times a long war could massively put upward pressure on inflation and reduce growth rate in the euro zone.
Company Highlights
Thales Earnings Report
Among individual stocks, Thales gained 0.7% after the French aerospace and technology firm reported a slightly higher-than-expected annual core profit.
Reporting Credits
(Reporting by Avinash P and Pranav Kashyap in Bengaluru; Editing by Mrigank Dhaniwala)
