European shares tumbled to one-month lows Tuesday as the global equity selloff accelerated. The pan-European STOXX 600 index slid 2.6%, heading for its steepest daily drop since April. If the losses hold, the benchmark would be down roughly 4% across the past two sessions.

Every sector of the STOXX 600 fell into the red, with financials leading the decline. The banking index sank to a near three-month low, with UK-focused lenders taking the hardest hits as investors priced in greater Middle East exposure. Travel stocks remained under heavy pressure.

Lufthansa dropped 4% in morning trade while British Airways-owner IAG fell 5.2% and Air France-KLM slid 5%. The market fear is that an energy shock from Middle East conflict will rekindle inflation while squeezing already tepid European growth. With the Strait of Hormuz closed to marine traffic, attacks have disrupted commercial shipping through the Gulf, threatening Europe's fuel and petroleum supply chains.