Luxury stocks tumbled Monday as U.S. and Israeli strikes on Iran rattled consumer confidence in the Middle East. Paris-listed LVMH dropped over 3%, Kering fell 4.3%, and Richemont plunged more than 6%. In the UK, Burberry shares slid 4%, while Ferrari dipped 3.8% in U.S. premarket trading.

Morgan Stanley analysts warned that the Middle East accounts for roughly 5% of sales for major luxury brands, with the United Arab Emirates being the largest market. The timing is particularly sensitive as regional spending typically peaks during Ramadan's final days before Eid al-Fitr on March 19-20. Analysts including Natasha Bonnet and Edouard Aubin cautioned that the "Ramadan rush" could be severely impacted.

The strikes killed several high-ranking Iranian officials including Supreme Leader Ayatollah Ali Khamenei. President Trump suggested the conflict could last four to five weeks and declined to detail U.S. transition plans, saying he has "three very good choices." Tehran has already launched retaliatory attacks on energy-producing Gulf nations.