The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 16, 2026. REUTERS
March 13 (Reuters) – European shares fell on Friday and were headed for a second weekly loss, as escalating conflict in the Middle East and inflation worries dented risk appetite.
The pan-European benchmark STOXX 600 was down 0.8% at 594 points by 0806 GMT, with all regional indexes in the red.
Economically-sensitive banks led sectoral losses with a 1.9% fall. Oil giants BP and Shell were in a bright spot as crude prices traded above $100 a barrel.
Global markets extended their declines this week as U.S.-Israel war on Iran approached the two week-mark with heavy exchanges of drone and missile strikes across the region.
Markets are bracing for a drawn-out conflict, with Trump escalating rhetoric against Iran, and Tehran pledging to keep the Strait of Hormuz shut, fuelling concerns over energy-driven inflation and pushing traders to rein in rate-cut bets.
On the macro front, inflation in France rose 1.1% year-on-year in February, data showed, while the British economy grew by 0.2% in the three months to January, below expectations.
Among individual moves, BE Semiconductor Industries shares jumped 10.8% after the chip equipment maker fielded takeover interest, Reuters reported.
Reporting by Avinash P in Bengaluru
