Stoxx 600, FTSE, DAX, CAC, Iran news

LONDON — European markets were set to open broadly lower on Tuesday, as traders monitored developments in the Middle East and Ukraine amid renewed volatility in oil markets.

In London, the FTSE 100 was set to open 0.58% lower, while France’s CAC 40 was expected to begin trading down 0.33%, with Germany’s DAX 0.34% lower and the Italian FTSE MIB dipping 0.46%, according to IG data. Stoxx 50 futures were down 0.31%.

The retreat follows strong gains across major European bourses on Monday, with the DAX ending the session 2.01% higher, the CAC 40 rising 1.76% and the FTSE MIB up 1.43%. Markets were closed in London on Monday for the U.K. late spring bank holiday.

The Stoxx 600 finished Monday up 1.04%, closing at its highest level in more than 10 months after clawing back losses suffered since the start of the Middle East conflict on Feb. 28.

U.S. forces carried out what Central Command described as “self defense” strikes in southern Iran early Tuesday. Secretary of State Marco Rubio, who is in India, said that the Strait of Hormuz ultimately will have to be opened “one way or the other.”

The apparent flare-up in hostilities came despite President Donald Trump earlier indicating in a TruthSocial post that a peace agreement could be in sight, with negotiations “proceeding nicely.”

The mixed picture meant oil markets were in flux in early dealmaking. International benchmark Brent crude was up 2.7% at $98.73. By contrast, in the U.S., where markets are due to reopen following the Memorial Day holiday on Monday, West Texas Intermediate futures were last seen 4.3% lower at $92.44.

Investors are also closely monitoring events in the ongoing war in Ukraine, after Russia’s foreign minister Sergei Lavrov told his U.S. counterpart Marco Rubio to evacuate diplomats and citizens from Kyiv ahead of fresh “systematic strikes” on the Ukrainian capital. It follows a series of targeted attacks over the weekend.

There are no major economic data releases expected on Tuesday.