FX.co ★ European Stocks Head for Lower Open

European equity markets were poised to open lower on Tuesday as investors continued to weigh escalating tensions in the Middle East after renewed hostilities between the US and Iran. President Donald Trump announced plans to reinstate a blockade on Iranian vessels transiting the Strait of Hormuz and called for reimbursement from countries that benefit from US efforts to secure the critical shipping route. The news pushed oil prices sharply higher, intensifying concerns about inflation and the prospect of interest rate hikes. Investors were also awaiting a key US inflation report and earnings from major US banks. In Europe, attention will focus on German wholesale price data, while the corporate earnings calendar remains relatively light. In premarket trading, Euro Stoxx 50 futures were down 0.4%, and Stoxx 600 futures slipped 0.3%.