BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open broadly lower on Wednesday, though energy stocks may rise after a spike in oil prices overnight.
Middle East tensions intensified, with reports suggesting that U.S. President Donald Trump is weighing the possibility of U.S. involvement in Israel's ongoing strikes on Iranian nuclear facilities.
Making his stance clear. 'I'm not too much in the mood to negotiate with Iran,' Trump said, adding that his goal is a permanent solution: 'an end, a real end, not a ceasefire.'
Later, on Truth Social, Trump said that Iran's Supreme Leader Ali Khamenei is an easy target but 'for now' he would not act to eliminate him.
Subsequently, he posted, in all capital letters: 'UNCONDITIONAL SURRENDER!'.
Meanwhile, Ayatollah Ali Khamenei, in a message on X, wrote that the battle has begun. 'In the name of Nami, the battle begins. Ali returns to Khaybar with his Zulfiqar,' a translation of his post suggested.
In economic releases, consumer prices data from the U.K. and the euro area are awaited later in the day.
Across the Atlantic, the Fed's monetary policy announcement will be in the spotlight along with reports on housing starts and weekly jobless claims.
While any movement on interest rates seems improbable, new projections for interest rates and the economy released after the meeting could move markets.
The Bank of England is expected to hold interest rates at 4.25 per cent on Thursday after inflation jumped in April.
Asian markets traded mixed, a weaker dollar supported metal prices and gold held steady below $3,400 per ounce, while oil prices dipped after climbing more than 4 percent on Tuesday to hit a near five-month high.
Overnight, U.S. stocks fell notably as the Israel-Iran conflict raged for a fifth day and weak retail sales, housing and industrial output data lifted bonds ahead of the Federal Reserve decision.
President Trump claimed that the U.S. has 'complete and total control of the skies over Iran', adding that Iran's defense systems, including advanced tracking equipment, are no match for American-made military technology.
The tech-heavy Nasdaq Composite declined 0.9 percent, the S&P 500 fell 0.8 percent and the Dow gave up 0.7 percent.
European stocks closed firmly in the red on Tuesday following Trump's call to evacuate Tehran.
The pan-European STOXX 600 closed 0.9 percent lower. The German DAX lost 1.1 percent, France's CAC 40 shed 0.8 percent and the U.K.'s FTSE 100 dropped half a percent.
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