Stoxx 600, FTSE, DAX, CAC, Iran latest

LONDON — European stocks are expected to open firmly in negative territory on Tuesday as the geopolitical crisis in the Middle East continues to weigh on global market sentiment.

The U.K.’s FTSE index is seen opening 0.7% lower, Germany’s DAX down 1%, France’s CAC 40 down 0.75% and Italy’s FTSE MIB 0.6% lower, according to data from IG.

Global markets continue to slide as the conflict between the U.S. and Iran engulfs the wider Gulf region. Overnight, Saudi Arabia’s defense ministry said that two drones hit the U.S. embassy in Riyadh.

A risk-off mood has taken hold of markets, with gold, considered a safe-haven during times of uncertainty, surging. Global equities continue to remain under pressure, with U.S. futures and Asian markets falling Tuesday.

Global crude oil prices also surged Monday on worries that the U.S.-Iran conflict could disrupt oil infrastructure and push up fuel prices, adding inflationary risks.

An Iranian Revolutionary Guard commander said the Strait of Hormuz — the world’s most vital transit route for crude oil — is closed and that Iran would set ablaze ships attempting the route, Reuters reported, citing Iranian media.

The conflict is now entering its fourth day on Tuesday with no clear endpoint. On Monday, U.S. military leaders said more forces are headed to the region, and President Donald Trump said the war would last four to five weeks, but that it could go on “far longer than that.”

The European Union has called for a de-escalation of the situation and for “maximum restraint,” and for the protection of civilian life.

On the data front on Tuesday, earnings come from Thales, Alcon, ASM International, Kuehne und Nagel International and Schaeffler. Data releases include the latest flash euro zone inflation figures, expected to remain around 1.7% in February.