BERLIN, GERMANY – MARCH 16: A truck and a bicyclist pass by a petrol station that shows gasoline prices well over EUR 2.00 per litre on March 16, 2026 in Berlin, Germany. The German government, in response to dramatic price increases of petrol in Germany since the outbreak of the U.S.-Israeli military conflict with Iran, is considering new legislation to help lower the price hikes. Petrol prices have risen higher in Germany than elsewhere in Europe. (Photo by Sean Gallup/Getty Images)
Sean Gallup | Getty Images News | Getty Images
European stocks opened marginally higher on Tuesday as investors brace themselves ahead of President Donald Trump’s deadline for Iran to reopen the Straight of Hormuz, due later in the day.
Shortly after the opening bell, the pan-European Stoxx 600 index was seen trading 0.1% higher, with most sectors in the green. London’s FTSE 100 opened 0.15% higher in early morning trade, while Germany’s Dax fell 0.4%. France’s Cac 40 rose 0.5%.
European markets are returning from a 4-day Easter break, after finishing Thursday’s session in mixed territory.
Investors are struggling to digest the U.S. administration’s mixed messaging on a potential resolution to the conflict. Trump has threatened to target Iran’s civilian infrastructure if a peace deal is not reached in less than 24 hours, while also signaling that the Iranian leadership was negotiating “in good faith.”
Trump has reiterated his demand for Iran to reopen the Strait of Hormuz by 8 p.m. E.T. on Tuesday, which would allow traffic to start flowing again through the vital route for global energy supplies. He warned the U.S. would decimate every bridge and power plant within four hours of that deadline not being met.
In corporate news, shares in Universal Music popped 29% in response to a $64 billion takeover proposal by Pershing Square.
UMG will form a newly merged company with billionaire Bill Ackman’s flagship hedge fund and list on the New York Stock Exchange, according to the terms of the transaction, which is expected to close by the end of the year.
Asia-Pacific markets whipsawed in volatile trading on Tuesday, with major indices flipping to losses in the morning session, as uncertainty surrounding the war weighs on investor sentiment.
Investors will also be monitoring PMI manufacturing data for the U.K. and Eurozone in March, released later on Tuesday, for the latest evidence on the Iran war’s impact on the European economy.
— CNBC’s Anniek Bao also contributed to this report.