European equity markets were set for a muted open on Monday as investors monitored the escalating conflict between Israel and Iran, which risks broadening into a wider regional crisis.
The hostilities continued over the weekend, with both nations targeting energy infrastructure, fueling a further rise in oil prices.
Iran also warned it may shut down the Strait of Hormuz, a critical chokepoint for global oil shipments.
Against this backdrop, market participants are turning their focus to key economic data and central bank decisions later in the week.
Germany’s ZEW economic sentiment survey is due Tuesday, followed by the UK’s inflation report on Wednesday.
On Thursday, the Bank of England is expected to keep interest rates unchanged at 4.25%, as it continues to weigh persistent inflationary pressures against signs of economic softening.
In early premarket trade, Euro Stoxx 50 and Stoxx 600 futures hovered near the flatline, reflecting investor caution.