European Shares Seen Tad Higher At Open

(RTTNews) - European stocks are likely to open higher on Tuesday amid lingering hopes for a deal to end the U.S.-Iran war and reopen the Strait of Hormuz.

With a two-week ceasefire expiring in hours, a senior Iranian official reportedly said the country would attend peace talks with the United States in Pakistan.

U.S. President Donald Trump said the blockade or Iranian ports would not be lifted until an agreement had been reached and that Iran is losing $500 million dollars a day, which is unsustainable for Tehran.

Iran's top negotiator and Parliamentary Speaker Mohammad Bagher Ghalibaf has accused Trump of turning the negotiating table into a surrender table or to justify renewed warmongering.

Beyond geopolitical tensions, traders will keep a close eye on the upcoming confirmation hearing of Federal Reserve Chair nominee Kevin Wash for signals on inflation, interest rates and central bank independence.

The U.S. March retail sales report is due later in the day, but elevated oil prices could complicate the interpretation of the data.

On the earnings front, UnitedHealth, RTX, GE Aerospace, 3M and United Airlines are set to report later in the day.

Asan markets traded mixed as tensions between Washington and Tehran continued to simmer ahead of a potential ceasefire deadline.

The dollar index was steady, and gold was subdued below $4,800 an ounce, while Brent crude prices slipped more than 1 percent toward $94 a barrel.

U.S. President Trump indicated that he is unlikely to extend the truce with Iran if no agreement is reached before its expiry Wednesday evening, Washington time.

Overnight, U.S. stocks ended modestly lower as oil prices jumped sharply following escalating tensions between Washington and Tehran.

After the U.S. attacked and seized an Iranian-flagged cargo ship in the Gulf of Oman, Iran reversed its decision to reopen the Strait of Hormuz and refused new face-to-face talks with the U.S.

Refusing to lift the U.S. blockade on Iranian ports, President Trump said the seized vessel was under sanctions, threatening to destroy Iran's power plants and bridges if the ceasefire lapses.

Trump also asserted that any new deal with Tehron would be "far better" than the 2015 Joint Comprehensive Plan of Action (JCPOA).

The tech-heavy Nasdaq Composite dipped 0.3 percent to snap a 13-day winning streak, while the S&P 500 eased 0.2 percent and the Dow finished marginally lower.

European stocks declined on Monday as Iran rejected participation in a second round of peace talks, citing Washington's excessive demands, constant shifts in stance, contradictions and the continuing naval blockade.

The pan European Stoxx 600 fell 0.8 percent. The German DAX fell 1.2 percent, France's CAC 40 shed 1.1 percent and the U.K.'s FTSE 100 dropped 0.6 percent.