European equity markets opened cautiously on Tuesday, with major indices struggling to gain momentum as oil prices moved higher following reports that several U.S. allies declined President Donald Trump’s request to assist in reopening a key maritime route near Iran.
At 08:03 GMT, the pan-European Stoxx 600 index slipped 0.1% to 598.08. Germany’s DAX declined 0.3%, France’s CAC 40 was broadly flat, while the UK’s FTSE 100 edged up 0.1%.
Brent crude, the global oil benchmark, surged 3.3% to $103.58 in early European trading after Japan, Germany and Australia signaled they would not participate in U.S.-led efforts to restore shipping through the Strait of Hormuz. The strategic waterway handles roughly one-fifth of global oil shipments.
Following the launch of joint U.S.-Israeli military strikes against Iran in late February, Tehran responded by threatening to target ships attempting to pass through the narrow strait, effectively disrupting traffic.
As a result, several container shipping companies have suspended operations in the area, citing crew safety concerns and difficulties securing insurance coverage for voyages through the region.
The jump in oil prices has heightened concerns about renewed global inflationary pressures, raising the possibility that central banks could reconsider the pace of interest rate cuts. With inflation risks increasing, both the European Central Bank and the U.S. Federal Reserve are widely expected to keep interest rates unchanged at their upcoming policy meetings this week.
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