Traders work on the floor of the New York Stock Exchange during morning trading on April 17, 2026 in New York City.
Michael M. Santiago | getty images
LONDON – European shares are set for a fall at the start of the new trading week on fears a resurgence of US-Iran tensions over the weekend could derail a fragile ceasefire between the two countries.
of britain FTSE 100 The index is seen opening down 0.34% with Germany dex down 1.1%, and France’s cac 40 and of Italy FTSE MIB According to IG data, both are down 1%.
President Donald Trump said on Sunday that a US Navy guided missile destroyer fired upon and disabled an Iranian-flagged cargo ship in the Gulf of Oman, before Marines boarded the ship and seized it.
The seizure is a result of the US blockade of the strait and comes after Iran fired on commercial ships attempting to transit the sea route early Sunday.
Since last week, the US has been imposing a naval blockade of ships entering and exiting Iranian ports. Iran views the ongoing blockade as a violation of the ongoing ceasefire, which it cites as one of its reasons for canceling talks expected on Monday in Islamabad.
trump caution On Sunday he said he would “demolish every single power plant and every single bridge in Iran” if Tehran does not agree to Washington’s terms to end the conflict. The fragile ceasefire between the two countries will end this week.
Asia-Pacific markets were mostly trading higher overnight but US futures fell early on Monday. The decline comes after a triumphant week for Wall Street, in which the S&P 500 and Nasdaq Composite climbed to all-time highs following a ceasefire between Iran and Lebanon last week.
Iran had announced that the Strait of Hormuz had reopened, but as of Saturday, ship traffic through that key shipping lane was again restricted, with state media saying the US had “not met its obligations.”
There will be no major earnings or data releases in Europe on Monday.
— CNBC’s Justina Lee and Fred Imbert contributed to this markets report.
