European stock markets opened Tuesday’s session with limited direction, as investors weighed rising oil prices and ongoing geopolitical tensions linked to the situation in the Middle East.
In early trading, the pan-European Stoxx 600 index slipped 0.1% to 598.08. Germany’s DAX declined 0.3%, while France’s CAC 40 remained largely unchanged. In contrast, the UK’s FTSE 100 edged slightly higher, gaining 0.1%.
Oil markets were a key focus, with Brent crude climbing 3.3% to $103.58 per barrel during early European trading. The move followed reports that several U.S. allies, including Japan, Germany, and Australia, declined to support efforts to reopen the Strait of Hormuz—one of the world’s most critical shipping routes, responsible for transporting around 20% of global oil supply.
Tensions have escalated since joint U.S.-Israeli strikes on Iran in late February, with Tehran responding by threatening to target vessels attempting to pass through the strait. As a result, shipping activity has been disrupted, with many companies suspending routes due to safety concerns and insurance challenges.
The rise in oil prices has renewed concerns about global inflation, as higher energy costs could put upward pressure on consumer prices worldwide. This has increased uncertainty around the outlook for monetary policy.
Central banks are now in focus, with both the European Central Bank and the U.S. Federal Reserve expected to keep interest rates unchanged at their upcoming meetings. However, markets remain alert to any signals that policymakers may adjust their stance in response to persistent inflation risks.
