European markets struggle for direction as oil prices fluctuate

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Traders work on the floor of the New York Stock Exchange at the opening bell, March 12, 2026.

Timothy A. Clary | Afp | Getty Images

LONDON — European stocks are set to open broadly flat on Tuesday as global markets remain volatile and oil prices continue to fluctuate.

The U.K.'s FTSE 100 index is seen opening 0.1% higher while Germany’s DAX, France’s CAC 40 and Italy’s FTSE MIB are expected to be flat, according to data from IG.

Regional markets regained ground on Tuesday morning as investors continued to weigh ongoing unrest in the Middle East and elevated global oil prices.

Oil prices declined on Monday, with WTI trading at just below $95 a barrel, down from above $100 at the weekend, after a Wall Street Journal report stated the U.S. will soon announce a coalition of countries to escort ships through the Strait of Hormuz.

U.S. Treasury Secretary Scott Bessent also told CNBC Monday that the U.S. is allowing Iranian oil tankers passage through the Strait. But oil prices jumped over 2% overnight as uncertainty lingered over a U.S.-led coalition to protect shipping.

Traders’ attention is turning to central bank action this week with the U.S. Federal Reserve opening a two-day policy meeting on Tuesday.

The Fed has come under sustained pressure from Trump to lower interest rates but the war on Iran means traders are forecasting a hold on interest rates from the central bank when it delivers its monetary policy decision on Wednesday.

Asian markets broadly rose overnight while U.S. stock futures fell slightly.

Earnings come from Prudential and Poste Italiane on Tuesday, while data releases include the latest reading of EU economic sentiment.

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