European markets opened higher Monday despite ongoing geopolitical tensions between Iran and the U.S., with equities recovering from recent volatility linked to Middle East concerns. The rally reflects improved risk appetite, supported by expectations of contained regional spillover and stable oil prices, limiting immediate inflation and supply disruption fears. Eurozone equities, particularly export-heavy and cyclical sectors, are most exposed to shifts in global risk sentiment and energy price stability. Investors are now focused on upcoming Eurozone inflation data and any developments in U.S.-Iran diplomatic channels that could signal escalation or de-escalation. A surprise move in oil prices or central bank commentary reacting to geopolitical risks could serve as a near-term catalyst.
European markets to start the week broadly higher despite Iran-U.S. impasse-cnbc
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