FX.co ★ European Markets Poised for Cautious Open

European equity markets were poised for a subdued start on Monday as investors remained vigilant in light of the intensifying conflict between Israel and Iran, which threatens to expand into a broader regional crisis. Hostilities persisted over the weekend, with both countries targeting energy infrastructure, leading to further increases in oil prices. Iran also issued a warning regarding the potential closure of the Strait of Hormuz, a vital passage for global oil shipments. Amid these developments, market players are shifting their attention to key economic data and central bank decisions slated for later in the week. Germany is set to release its ZEW economic sentiment survey on Tuesday, while the UK's inflation report is scheduled for Wednesday. On Thursday, the Bank of England is anticipated to maintain interest rates at 4.25%, as it balances ongoing inflationary pressures with indicators of economic deceleration. Early premarket trading saw Euro Stoxx 50 and Stoxx 600 futures hovering around the flatline, indicating a cautious investor sentiment.