Stoxx 600, FTSE, DAX, CAC, oil, Iran latest news

LONDON — European stocks are expected to fall at the start of the new trading week on fears that a re-escalation of U.S.-Iran tensions at the weekend could derail the fragile ceasefire between the two countries.

of england FTSE100 Germany’s index is expected to open with a decrease of 0.34% DAX France, down 1.1% CAC 40 and Italy FTSE MIB Both are 1% lower, according to IG’s data.

A U.S. Navy guided missile destroyer opened fire on and disabled an Iranian-flagged cargo ship in the Gulf of Oman before Marines boarded and seized the ship, President Donald Trump said Sunday.

The seizure marks an escalation of the US blockade of the strait and comes after Iran opened fire on commercial ships trying to cross the sea passage early Sunday.

Since last week, the USA has been imposing a naval blockade on ships entering and leaving Iranian ports. Iran sees the ongoing blockade as a violation of the ongoing ceasefire and cites it as one of the reasons for the cancellation of talks expected to be held in Islamabad on Monday.

Embers warned He said on Sunday that Tehran would “disable every Power Plant and every Bridge in Iran” if it did not accept Washington’s terms to end the conflict. The fragile ceasefire between the two countries will end this week.

Asia-Pacific markets traded mostly higher overnight but U.S. futures fell early Monday. The declines follow a profitable week for Wall Street, with the S&P 500 and Nasdaq Composite climbing to all-time highs last week following the ceasefire between Iran and Lebanon.

Iran had announced the reopening of the Strait of Hormuz, but ship traffic in the key shipping lane was restricted again on Saturday, with state media saying the US had “failed to fulfill its obligations”.

There are no major earnings or data releases in Europe on Monday.

— CNBC’s Justina Lee and Fred Imbert contributed to this market report.