European stocks set to open lower as Trump refuses to lift Strait of Hormuz blockade

LONDON — European stocks are expected to open in negative territory on Wednesday as traders assess the Iran ceasefire extension and the prospect of further peace talks.

The U.K.’s FTSE index, Germany’s DAX and France’s CAC 40are all expected to open 0.3% lower, respectively, while Italy’s FTSE MIB is seen just a touch below the flatline, according to data from IG.

U.S. PresidentDonald Trumpon Tuesday extended the two-week U.S. ceasefire withIran, saying the extension was warranted due to Tehran’s government being “seriously fractured.”

Trump said the ceasefire, which he earlier had said would end on Wednesday, would continue “until such time as” Iran’s leaders and representatives submit a “unified proposal” to end the war with the U.S. and Israel.

The President’s announcement came after reports that an expected trip byVice President JD Vanceto Pakistan for a second round of peace talks with Iranian officials had been put on hold.

Iranian state news outlet Tasnim also reported that negotiators from Tehran had informed their U.S. counterparts through an intermediary in Pakistan that they would not appear for further talks.

While the ceasefire extension saw oil prices moderate, market sentiment was kept in check by Trump’s refusal to lift the ongoing U.S. blockade of Iranian ports.

He said in a Truth Social post: “They only say they want [the Strait of Hormuz] closed because I have it totally BLOCKADED (CLOSED!), so they merely want to ‘save face.'”

Trump added that lifting the blockade would mean “there can never be a Deal with Iran, unless we blow up the rest of their Country, their leaders included.”

Earnings are in focus in Europe on Wednesday with L’Oreal, ABB, EssilorLuxottica, Nordea Bank, Sandvik, Danone, Reckitt Benckiser Group, Svenska Handelsbanken and Carrefour all set to report.

Data releases include U.K. inflation figures for March, the first data since the Iran war started and energy prices surged, and European consumer confidence data.

— CNBC’s Dan Mangan and Kevin Breuninger contributed to this market report.