# European markets hurting as Iran war widens | Reuters

> The euro fell 0.3% to $1.1656 on Tuesday, its lowest since January, and sterling touched its weakest level against the dollar since December. Gilt yields rose on concerns that higher oil prices will feed into inflation. JPMorgan said Brent at $100-$120 could push the euro to $1.10-$1.13 if the conflict lasts more than three weeks.

- Date: 2026-03-02 · published 2026-03-02T12:00:00.000Z
- Category: geopolitics · region Europe · magnitude medium
- Page: https://feedsoft.ai/events/11002-european-markets-hurting-as-iran-war-widens-reuters
- Commodities: [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A sustained oil spike would raise European energy and inflation pressures, weakening the euro and sterling and tightening financial conditions. Higher Brent also raises diesel and freight costs for feed supply chains.

## Read by commodity

- DXY: bullish ▲
- BRENT: bullish ▲
- EURUSD: bearish ▼
- GBPUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2026-03-02 | 1 | -1.1% | -3.3 | Euro hit its lowest since January on Iran war widening and oil-inflation worries, with JPMorgan flagging further downside if Brent stays elevated; dated 2 March so coincident with the move. |
| DXY | 2026-03-02 | 1 | +0.7% | 3.3 | Euro and sterling weakness against the dollar on oil-inflation fears matches the move, though the report is dated slightly after March 2 (Tuesday). |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| BRENT | 2025-06-13 | [European oil product markets jump on Israel-Iran war risk](https://feedsoft.ai/events/7760-european-oil-product-markets-jump-on-israel-iran-war-risk.md) | +12.0% | -0.8% |
| BRENT | 2026-04-29 | [Reuters reports the UAE plans to exit OPEC on 1 May, highlighting Gulf rifts amid Iran-war energy crisis - VT Markets](https://feedsoft.ai/events/19904-reuters-reports-the-uae-plans-to-exit-opec-on-1-may-highlighting-gulf-rifts.md) | -1.9% | -16.4% |
| BRENT | 2026-04-09 | [Dollar struggles to rebound as fragile US-Iran ceasefire keeps markets wary \| Reuters](https://feedsoft.ai/events/11158-dollar-struggles-to-rebound-as-fragile-us-iran-ceasefire-keeps-markets-wary.md) | -2.9% | -4.7% |
| BRENT | 2026-02-28 | [Iran war throws oil market into biggest crisis in decades \| Reuters](https://feedsoft.ai/events/20769-iran-war-throws-oil-market-into-biggest-crisis-in-decades-reuters.md) | +31.0% | +62.6% |
| BRENT | 2026-03-05 | [Oil settles up around 5% on supply concerns as Iran conflict widens \| Reuters](https://feedsoft.ai/events/5232-oil-settles-up-around-5-on-supply-concerns-as-iran-conflict-widens-reuters.md) | +12.3% | +35.0% |
| EURUSD | 2022-02-25 | [From euro to EM: Russia's Ukraine war upends market bets \| Reuters](https://feedsoft.ai/events/9834-from-euro-to-em-russia-s-ukraine-war-upends-market-bets-reuters.md) | -0.9% | -1.3% |
| EURUSD | 2026-03-01 | [Euro, yen slide as Middle East conflict escalates \| Reuters](https://feedsoft.ai/events/11001-euro-yen-slide-as-middle-east-conflict-escalates-reuters.md) | -1.8% | -2.6% |
| EURUSD | 2022-02-24 | [Euro hits three-week low, Aussie skids as Putin orders troops into Ukraine - Markets - Business Recorder](https://feedsoft.ai/events/9835-euro-hits-three-week-low-aussie-skids-as-putin-orders-troops-into-ukraine.md) | -1.9% | -2.8% |

## Sources

- reuters.com: https://www.reuters.com/business/finance/upbeat-european-markets-waver-under-turmoil-middle-east-2026-03-02/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.