European shares fell across the board as the Middle East conflict continued to escalate, with the pan-European STOXX 600 dropping 1.8% to its lowest point since mid-February. The situation has escalated following weekend attacks by the United States and Israel that killed Iran's Supreme Leader Ayatollah Ali Khamenei, leading to fears that the conflict could widen and potentially draw neighbouring countries. The defence sector rose by 0.4% as the conflict increases expectations of higher U.S. defence spending.