European Markets React to Middle East Tensions

European shares saw a decline on Monday, influenced by the United States' decision to team up with Israel for airstrikes on Iran's nuclear sites over the weekend, further exacerbating investor anxiety over the Middle East conflict.

The pan-European STOXX 600 index decreased by 0.3% to 535.11 points as of 0712 GMT, with other major regional indices following suit. The tension intensified as Iran and Israel engaged in air and missile exchanges on Monday, igniting global concerns over Iran's response to the U.S. strike on its nuclear installations.

U.S. President Donald Trump, on the Truth Social platform, speculated about regime change in Iran, adding to market fears of Iran possibly closing the Strait of Hormuz, a vital oil transit route. Despite the market's overall downturn, the oil and gas sector saw a 0.7% rise due to intensified fears of supply disruptions. In contrast, travel and leisure stocks fell by 0.8%.

Against the backdrop of geopolitical instability, Spectris shares surged 14.6% after the private equity firm Advent announced its acquisition of the scientific instruments maker in a deal worth 4.4 billion pounds ($5.91 billion).

(With inputs from agencies.)