FX.co ★ European Stocks Back in the Red

European equities opened the week in negative territory, with the STOXX 50 down 1.3% and the STOXX 600 declining 0.9%, as investors reacted to a renewed escalation in tensions involving Iran and a further collapse in ceasefire efforts. The situation intensified over the weekend: on Sunday, the US Navy intercepted an Iranian container ship in the Gulf of Oman, and US Marines subsequently seized control of the vessel after it attempted to breach the naval blockade of Iran’s ports. A day earlier, Iran had targeted a tanker in the Strait of Hormuz. Although President Trump indicated that talks between the US and Iran were planned for Monday in Islamabad, Iranian officials refused to participate, citing the ongoing US naval blockade. In response to these developments, oil prices rose again, rekindling concerns about the potential impact on inflation and broader economic growth.