European stocks poised to open lower after U.S. strikes on Iran and uncertain peace talks

• U.S. Central Command conducted 'self-defense' strikes in southern Iran early Tuesday, with Secretary of State Marco Rubio stating the Strait of Hormuz must be opened 'one way or the other'
• European indices projected to open down 0.31% to 0.58%, reversing Monday's gains when the DAX rose 2.01%, CAC 40 climbed 1.76%, and FTSE MIB increased 1.43%
• Oil prices showed divergent moves with Brent crude up 2.7% to $98.73 while WTI futures fell 4.3% to $92.44 amid geopolitical uncertainty and Trump's signals that peace negotiations are 'proceeding nicely'

SUMMARY

European stock markets are expected to open lower on Tuesday following U.S. military strikes on Iran and conflicting signals regarding peace negotiations. London's FTSE is projected to decline 0.58%, France's CAC 40 down 0.33%, Germany's DAX down 0.34%, and Italy's FTSE MIB down 0.46%, with Stoxx 50 futures falling 0.31%.

Key Developments:

The downturn follows strong Monday gains across European markets, with the DAX up 2.01%, CAC 40 rising 1.76%, and FTSE MIB gaining 1.43%. London markets were closed Monday for a bank holiday.

U.S. Central Command conducted "self-defense" strikes in southern Iran early Tuesday. Secretary of State Marco Rubio stated the Strait of Hormuz must be reopened "one way or the other," escalating regional tensions. However, former President Trump indicated on TruthSocial that peace negotiations are "proceeding nicely," creating uncertainty around the geopolitical outlook.

Market Impact:

Oil markets showed significant volatility. International benchmark Brent crude rose 2.7% to $98.73, while U.S. crude futures fell 4.3% to $92.44 amid the conflicting signals.

The broader Stoxx 600 index closed Monday at its highest level in over 10 months, up 1.04%, recovering losses sustained since the Middle East conflict began on February 28.

Additional Concerns:

Russia's Foreign Minister Sergei Lavrov warned of "systematic strikes" on Kyiv, advising U.S. diplomats and citizens to evacuate, adding further geopolitical risk to markets.

No major economic data releases are scheduled for Tuesday, leaving investor focus primarily on geopolitical developments in the Middle East and Ukraine.