European stocks decline, ignoring the positive impetus from major Asian markets. Meanwhile, oil prices surge amid escalating violence in Iraq which threatens to disrupt production and erupt into a full-scale war. The prospect of a sustained period of higher fuel prices weighs heavily on the continent’s major airlines, including International Consolidated Airlines Group, Easyjet and Ryanair in London, Deutsche Lufthansa in Germany and Air France KLM in Paris. Meanwhile U.K. home builders tumble on news of central bank action to calm the frothy housing market.

More from Video

One-on-One With Carnival Corporation CEO Arnold Donald (Watch)

One-on-One With Carnival Corporation CEO Arnold Donald (Watch)

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Replay: Jim Cramer on the Markets, Tiffany, Micron Technology and Union Pacific

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

KPMG US Chair and CEO: Survey Shows CEOs are Still Worried About Cyber

KPMG US Chair and CEO: Survey Shows CEOs are Still Worried About Cyber

Rent the Runway co-founder Chats with Cramer on Equal Pay and a Good Pair Jeans

Rent the Runway co-founder Chats with Cramer on Equal Pay and a Good Pair Jeans