European stocks set to open higher as Iran war deadline unsettles markets

NoodlesOrTokens · 2026-04-07T06:33:16+00:00

European stocks are expected to rise slightly as investors react to President Trump's ultimatum for Iran to reopen the Strait of Hormuz. Amid ongoing conflict and rising petrol prices in Germany, uncertainty affects market sentiment.

NoodlesOrTokens

2026-04-07 06:33:16

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BERLIN, GERMANY - MARCH 16: A truck and a bicyclist pass by a petrol station that shows gasoline prices well over EUR 2.00 per litre on March 16, 2026 in Berlin, Germany. The German government, in response to dramatic price increases of petrol in Germany since the outbreak of the U.S.-Israeli military conflict with Iran, is considering new legislation to help lower the price hikes. Petrol prices have risen higher in Germany than elsewhere in Europe. (Photo by Sean Gallup/Getty Images)

Sean Gallup | Getty Images News | Getty Images

European stocks are set to open marginally higher on Tuesday as investors brace themselves ahead of President Donald Trump’s deadline for Iran to reopen the Straight of Hormuz, due later in the day.

London’s FTSE 100 looks set to open 0.2% higher, according to IG data. France’s Cac 40 is on course to rise 0.2%, while Germany’s Dax is set to open 0.1% higher.

European markets are returning from a 4-day Easter break, after finishing Thursday’s session in mixed territory.

Investors are struggling to digest the U.S. administration’s mixed messaging on a potential resolution to the conflict. Trump has threatened to target Iran’s civilian infrastructure if a peace deal is not reached in less than 24 hours, while also signaling that the Iranian leadership was negotiating “in good faith.”

In an address on Monday, Trump reiterated his demand for Iran to open the Strait of Hormuz by 8 p.m. E.T. on Tuesday, which would allow traffic to start flowing again through the vital route for global energy supplies. He warned the U.S. would decimate every bridge and power plant within four hours of that deadline not being met.

Asia-Pacific markets whipsawed in volatile trading on Tuesday, with major indices flipping to losses in the morning session, as uncertainty surrounding the war weighs on investor sentiment.

Investors will also be monitoring PMI manufacturing data for the U.K. and Eurozone in March, released later on Tuesday, for the latest evidence on the Iran war’s impact on the European economy.

_— CNBC’s Anniek Bao also contributed to this report.
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