European stocks head for slump as Trump sets Hormuz deadline

• U.K.'s index projected to open 1% lower, while Germany's DAX, France's CAC, and Italy's FTSE MIB are expected down 1.4-1.5%
• Trump issued a 48-hour deadline Saturday threatening Iranian power plants, with Iran responding by escalating threats against Gulf energy infrastructure and desalination facilities
• Market sentiment weakened after major U.S. benchmarks posted their fourth consecutive weekly loss amid ongoing concerns over the vital Strait of Hormuz maritime passage blockage

Summary: European Stocks Set to Plunge on Iran-Hormuz Crisis

European markets are bracing for significant losses at Monday's open as escalating tensions over Iran and the Strait of Hormuz blockage weigh heavily on global investor sentiment. Major indices are projected to decline sharply: the UK's FTSE 100 down 1%, Germany's DAX falling 1.5%, France's CAC 40 dropping 1.4%, and Italy's FTSE MIB declining 1.5%.

Key Developments:

President Trump issued a 48-hour ultimatum Saturday, threatening to "obliterate" Iran's power plants if the vital maritime passage remains blocked. Iran escalated rhetoric in response, with Parliament speaker Mohammad Bagher Ghalibaf warning that energy infrastructure, desalination facilities, and entities financing the U.S. military would be considered legitimate targets alongside military bases.

Market Impact:

The crisis has triggered the fourth consecutive weekly loss for major U.S. benchmarks. Asian markets fell sharply during Monday trading, with European stocks expected to follow suit. Oil markets experienced volatile whipsawed trading earlier Monday as the Strait of Hormuz—a critical chokepoint for global energy supplies—remains threatened.

Broader Context:

The Strait of Hormuz blockage poses severe risks to global energy markets and supply chains. With tensions entering their fourth week, uncertainty continues mounting around potential military conflict and its economic ramifications.

Monday's European session will also feature earnings reports from multiple companies and Spanish trade balance data, though geopolitical concerns are likely to dominate trading activity. The crisis represents a significant risk-off environment for global markets.