FX.co ★ European Stocks Set for Muted Open

European equity markets were set for a slightly weaker open on Tuesday, as oil prices extended their gains amid diminishing prospects for a near-term agreement between the US and Iran. The continued rise in energy prices kept inflation risks and the outlook for interest rates firmly in focus. Tensions grew after Tehran demanded financial compensation for damages incurred during the conflict, prompting Trump to instruct US representatives to push forcefully for reparations from Iran as a condition in any future talks—adding yet another obstacle to diplomatic progress. In Europe, attention will turn to Italy’s latest trade figures, while investors also await earnings reports from Intercontinental Hotels, Lion Finance Group, Turkiye Petrol Rafinerileri, and others. In premarket trade, futures on both the Euro Stoxx 50 and the Stoxx 600 were down about 0.1%.