13.07.202606:05:45UTC+00European Markets Head for Lower Open

European equity markets were poised to open sharply lower on Monday, as a surge in oil prices driven by renewed hostilities between the US and Iran reignited concerns about inflation and the path of interest rates. The US carried out its fourth strike in a week against Iran on Sunday, in response to an Iranian attack on a Cyprus-flagged container ship. In turn, Tehran announced that the Strait of Hormuz would be closed “until further notice,” a claim later dismissed by US Central Command.

Investors are also bracing for key US inflation figures and a heavy slate of corporate earnings from Wall Street this week. By contrast, Europe’s calendar is quiet on Monday, with no major economic data releases or corporate earnings scheduled. Traders will instead focus on upcoming Eurozone and UK GDP data due later in the week. In premarket trading, futures on the Euro Stoxx 50 and Stoxx 600 were down 1% and 0.8%, respectively.