European Shares Set For Gap-down Opening

(RTTNews) - European stocks may tumble at open on Monday as investors keep a wary eye on the U.S.-Iran war and await quarterly results from Nvidia and major U.S. retailers for direction.

Nvidia and Target are scheduled to report their earnings on Wednesday, while Walmart will publish its results on Thursday.

U.S. equity futures were deep in the red after several Gulf countries reported drone attacks, sending oil prices sharply higher and marking a dangerous escalation in the Middle East conflict.

A nuclear power plant in the United Arab Emirates came under attack, raising doubts as to whether the fragile U.S.-Iran truce would hold.

Emirati officials said they have the full right to respond to "terrorist attacks" following a drone attack on the UAE's Barakah nuclear plant.

Saudi Araba reported intercepting three drones and warned it would take the necessary operational measures to respond to any attempt to violate its sovereignty and security.

Brent crude futures rose above $111 a barrel, building on last week's rally after U.S. President Donald Trump on Sunday warned that "the clock is ticking" for Iran and they better get moving, FAST, or there won't be anything left of them.

According to Iran's Fars News Agency, the U.S. has demanded for the permanent cessation of uranium enrichment and the handover of its enriched uranium stockpile.

The U.S. has refused to pay any war compensation and wants only one operating nuclear facility to remain in the Islamic Republic.

Iran is insisting that it would only return to negotiations if Israel's ongoing war with Hezbollah in Lebanon come to an end, its sovereignty over the vital Strait of Hormuz corridor is recognized, demands for reparations are met, sanctions on Iran are lifted and its frozen overseas assets are released.

Meanwhile, adding to worries over tight global supply, the Trump administration on Saturday allowed a waiver on Russian oil sales to expire.

Asian markets were broadly lower, gold was subdued at 4,536 an ounce and the dollar strengthened as investors bet on global rate hikes.

Several Federal Reserve officials recently emphasized that controlling inflation is their top priority and that interest rate hikes could be on the cards if price pressures persist.

China's economic activity unexpected weakened in April, with consumption, industrial output and investment growth all missing expectations, according to data released by the National Bureau of Statistics this morning.

U.S. stocks fell from record highs on Friday as spiking energy prices and higher Treasury yields following combative comments from President Trump and Iran's Foreign Minister Abbas Araqchi revived inflation fears.

The yield on 10-year Treasury notes reached its highest level since May 2025 as Jerome Powels's term as Federal Reserve Chair came to an end and the much-hyped U.S.-China summit ended with no major breakthroughs on trade or tangible help from Beijing to end the Iran war.

The Dow dipped 1.1 percent, the tech-heavy Nasdaq Composite tumbled 1.5 percent and the S&P 500 gave up 1.2 percent.

European stocks fell sharply on Friday after oil prices surged nearly 4 percent amid indications that the U.S. could resume strikes on Iran.

Traders also watched the latest political developments in the U.K., where Prime Minister Keir Starmer faced a fresh battle for his premiership.

The pan-European STOXX 600 declined 1.5 percent. The German DAX plummeted 2.1 percent, France's CAC 40 plunged 1.6 percent and the U.K.'s FTSE 100 slumped 1.7 percent.