European banks face biggest drop since April tariff shock after Middle East conflict

Shares in European banks set for their biggest daily drop since April 2025 tariff shock after the U.S.-Iran conflict and the closure of the Strait of Hormuz roiled global markets

The STOXX 600 banks index .SX7P falls 3.7% and is among the worst performers of sectoral indices on the pan-European STOXX 600 .STOXX index

Commerzbank CBKG.DE, BNP Paribas BNPP.PA, UBS UBSG.S, Julius Baer BAER.S and Societe Generale SOGN.PA are down between 2.2% and 3%

ING Groep INGA.AS, BBVA BBVA.MC, Banco de Sabadell SABE.MC, Deutsche Pfandbriefbank PBBG.DE and Unicredit CRDI.MI fall between 3% and 4%

HSBC HSBA.L, Standard Chartered STAN.L, BPER Banca EMII.MI, Raiffeisen Bank RBIV.VI and Barclays BARC.L are down between 3.8% and 5%