European equity markets were set to open lower on Monday as the conflict in the Middle East entered its fifth week with no signs of easing. Tensions intensified after former US President Donald Trump said he could “take the oil in Iran,” while Iran-backed Houthi militants in Yemen expanded the conflict by targeting Israel over the weekend.
A sharp rise in oil prices linked to the Iran war has heightened concerns about inflation and weaker economic growth, adding uncertainty to the monetary policy outlook in major economies. In Europe, investors will focus on German inflation data and Eurozone economic sentiment indicators for guidance. No major corporate earnings releases are scheduled for today. In premarket trading, futures on both the Euro Stoxx 50 and the Stoxx 600 were down around 0.5%.