BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening on a subdued note on Wednesday as oil prices remain elevated on growing concerns about prolonged disruptions to supply.
Brent prices held steady above $89 a barrel in Asian trade, after having soared nearly 12 percent over the previous five sessions as the U.S. and Iran remained at odds over reopening the Strait of Hormuz and Yemen's Iran-aligned Houthi forces launched fresh ballistic missile attacks on the Red Sea port city of AI-Makha.
Conflicting reports over diplomacy and Strait of Hormuz talks have hampered prospects for reopening the crucial waterway.
Pakistan's defense minister Khawaja Asif said the U.S. and Iran are close to 'some sort of an arrangement' and that 'things are shaping up again in favor of a peace arrangement or a deal.'
On the contrary, fresh attacks on ships in the Strait of Hormuz and Bab el-Mandeb raised worries that disruptions to global crude supplies could persist.
U.S. forces fired on a Panama-flagged ship that attempted to run the American blockade of Iranian ports early Tuesday.
Shipping data showed traffic through the strait fell to just six vessels on Monday compared with a 10-day average of about 11 and roughly 125 to 140 vessels before the war.
As inflation worries mount, traders await a closely watched report on U.S. consumer price inflation later in the day for fresh insights into the Federal Reserve's next move.
The report is expected to show consumer prices inched up by 0.1 percent in July after falling by 0.4 percent in June. Core consumer prices, which exclude food and energy prices, are expected to rise by 0.2 percent in July after coming in unchanged in June.
Producer price inflation data is due on Thursday, followed by retail sales and consumer sentiment readings on Friday.
Asian markets were mixed, with South Korea's Kospi rising nearly 4 percent, led by major technology stocks.
The dollar held firm in Asia trade while gold traded at $4,398 an ounce, rising towards a 10-week high.
Overnight, U.S. stocks closed lower after Iranian officials reiterated that the Strait of Hormuz would remain closed and negotiations could not resume unless the U.S. complied with a June framework agreement and compensated Iran for alleged violations.
The tech-heavy Nasdaq Composite dropped 0.6 percent and the S&P 500 fell 0.3 percent to extend losses for a second day running. The narrower Dow Jones shed 0.3 percent.
European stocks ended little changed near record highs on Tuesday as a breakdown in Middle East peace talks threatened Strait of Hormuz supply routes.
The pan-European STOXX 600 ended flat with a positive bias. While the German DAX rose 0.3 percent, France's CAC 40 slid 0.1 percent and the U.K.'s FTSE 100 eased 0.2 percent.
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