European stocks plunge after Trump vows to hit Iran ‘extremely hard’
City workers in the La Defense business district of Paris, France, on Thursday, Oct. 9, 2025.
Nathan Laine | Bloomberg | Getty Images
Europe-listed shares opened sharply lower on Thursday, as fears of escalation in the U.S.-Iran war gripped global markets once again.
Shortly after the opening bell, the pan-European Stoxx 600 was 1.2% lower, with most sectors and major regional bourses firmly in negative territory.
Mining and tech stocks led losses, with their respective indexes losing 2.8% and 3%.
In an address to the American people on Wednesday evening, U.S. President Donald Trump said he expected the war to last another two to three weeks, during which time U.S. forces will “hit” Iran “extremely hard.”
U.S. stock futures tumbled as Trump’s speech drew to a close, reversing a rally seen in Wall Street’s regular session on Wednesday. On Thursday morning, futures data pointed to a notably lower open for New York-listed stocks ahead of the opening bell.
Stocks listed in Asia also reversed gains on Thursday as investors digested Trump’s latest update.
Oil prices surged in the wake of the president’s address, with global benchmark Brent crude jumping more than 6% to trade at $107.98.
Oil prices have skyrocketed since the U.S. and Israel launched strikes on Iran on Feb. 28, sparking retaliatory strikes across the Gulf from Tehran. Over the course of March, global benchmark Brent crude oil surged more than 60%, marking the biggest monthly price gain since records began in the 1980s.
European stocks jumped on Wednesday ahead of Trump’s address, after the president first said the war would be over within weeks.
Investors are also reacting to reports on Thursday that the Trump administration is preparing new tariffs on pharmaceutical companies that have not made deals to guarantee low drug prices in the United States. Bloomberg first reported the news, citing anonymous sources.
In corporate news, British oil major Shell is reportedly in talks with the Venezuelan government to develop four large areas in some of the country’s biggest offshore natural gas fields, according to Reuters.
Elsewhere, Ryanair CEO Michael O’Leary warned on Wednesday evening that the U.K. is the most vulnerable market to jet fuel shortages as the Iran war drags on, given the country’s reliance on supplies from Kuwait.
— CNBC’s Dan Mangan, Anniek Bao and Alex Harring contributed to this report.
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