European markets slide as Iran ‘war trade’ joins the global AI ‘scare trade’ 

“Events,” the former U.K. Prime Minister, Harold Macmillan, opined when asked what most troubled him about the future. “My dear boy, events.” America and Israel’s attack on Iran and the killing of the Supreme Leader, Ayatollah Ali Khamenei, has once again created an event in the Gulf, with associated global market and economic ramifications.

Opening this morning for the first working day since the military attacks at the weekend, European stock markets slumped, and the price of oil and gas surged. Gold is up and the dollar—still a safe bet even amid Donald Trump-induced volatility—is following. The AI ‘scare trade’ has now been joined by the ‘war trade’ as investors watch the missiles rain down on TV news channels and indices turn red on their trading screens. Geopolitics is informing the risk premia du jour. 

Airlines and hotel groups led the fall this morning, reflecting investor concerns that conflict across the Middle East will halt travel plans—both business and pleasure—and lead to extended closures of airspace across one of the world’s most important travel hubs. Dubai International Airport is the........

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