The Athens Stock Exchange experienced a steep sell-off on Tuesday, with banking and major stocks leading losses as global markets reacted to escalating tensions in the Middle East.
The Athens General Index fell 3.22% to 2,130.04 points on high turnover of €42.2 million, while the FTSE 25 dropped 3.27% to 5,413.04 points. The banking sector faced the heaviest blow, declining 4.56% to 2,324.12 points.
Global Market Impact
European markets mirrored the negative sentiment, as geopolitical risks drove investors toward lower-risk positions. The pan-European Stoxx 600 lost 1.76% to 612 points, the UK’s FTSE 100 fell 1.45% to 10,624, Germany’s DAX dropped 2.12% to 24,112, and France’s CAC 40 slid 1.65% to 8,255 points.
Asian markets also suffered. South Korea’s Kospi index fell 7.24% in its worst session in 19 months, closing at 5,791.91 points, while Japan’s Nikkei 225 lost 3.06% to 56,279.1, affected by declines in consumer goods stocks.
Middle East Tensions Fuel Uncertainty
The sell-off was driven by the ongoing U.S.-Iran conflict, which has expanded across the Gulf region. Israel simultaneously launched strikes in Iran and Lebanon following attacks by the Iran-backed Hezbollah in Tel Aviv.
The U.S. ordered the withdrawal of non-essential personnel and families from Bahrain, Iraq, and Jordan, while President Donald Trump signaled the U.S. would take all necessary steps to achieve military objectives, leaving open the possibility of prolonged operations.
The crisis has heightened concerns for traditionally safe Gulf cities, with drones hitting the U.S. embassy in Riyadh and Iranian attacks targeting data centers in the UAE and Bahrain. Oil prices surged further as reports indicated that Iran had closed the Strait of Hormuz, a key chokepoint that handles nearly one-third of global seaborne oil exports.
Sector Performance and Investor Behavior
In Athens, major stock losses included ElvalHalcor down 6.55%, Eurobank, Viohalco, Cenergy, and GEK TERNA each falling over 5%, while National Bank, Alpha Bank, and Optima Bank declined more than 4%. Other blue-chip stocks, including Aegean Airlines, Titan, DEH, and Lamda, saw losses exceeding 3%.
Investors are increasingly turning to safe-haven assets such as gold, while equities in the U.S. and Asia continue to experience pressure amid global uncertainty.
The prolonged geopolitical instability is expected to keep volatility high, with market sentiment heavily influenced by the proximity of Greece to the conflict zone and its impact on foreign investor confidence.
This sell-off underscores the heightened risk environment for Greek banks and large-cap stocks, emphasizing the vulnerability of markets to sudden geopolitical shocks and the growing appeal of defensive investment strategies.
