European equity markets were set to open sharply lower on Monday after President Donald Trump announced plans to blockade the Strait of Hormuz, following the collapse of US-Iran negotiations in Islamabad over the weekend. The move has heightened concerns about a deeper global energy crisis, and Trump is also reportedly considering renewed military strikes on Iran.
The talks in Pakistan ended without a deal, with the US accusing Iran of refusing to give up its nuclear ambitions. Tehran, for its part, was said to have demanded control over the Strait of Hormuz, war reparations, a regional ceasefire, and access to frozen assets held abroad.
In Europe, investors will be watching Turkish retail sales and Russian trade figures, as well as earnings from French luxury conglomerate LVMH. In premarket trading, futures on the Euro Stoxx 50 and the Stoxx 600 were down 1.5% and 1.2%, respectively.
