European markets struggle for direction as oil prices fluctuate

<p>LONDON — European stocks are set to open broadly flat on Tuesday as global markets remain volatile and oil prices continue to fluctuate.</p>
<p>The U.K.'s <a href="/quotes/.FTSE/">FTSE 100</a> index is seen opening 0.1% higher while Germany's <a href="/quotes/.GDAXI/">DAX</a>, France's <a href="/quotes/.FCHI/">CAC 40</a> and Italy's <a href="/quotes/.FTMIB/">FTSE MIB</a> are expected to be flat, according to data from IG.</p>
<p>Regional markets regained ground on Tuesday morning as investors continued to weigh ongoing unrest in the Middle East and elevated global oil prices.</p>
<p>Oil prices declined on Monday, with WTI trading at just below $95 a barrel, down from above $100 at the weekend, after a <a href="https://www.wsj.com/livecoverage/us-israel-iran-war-news-2026/card/exclusive-trump-administration-plans-to-announce-coalition-to-escort-ships-through-strait-of-hormuz-YBtXVBjxeLjL6yAqEWJV">Wall Street Journal report</a> stated the U.S. will soon announce a coalition of countries to escort ships through the Strait of Hormuz. </p>
<p>U.S. Treasury Secretary Scott Bessent also <a href="https://www.cnbc.com/2026/03/16/us-is-allowing-iranian-tankers-through-strait-of-hormuz-says-bessent.html">told CNBC</a> Monday that the U.S. is allowing Iranian oil tankers passage through the Strait. But <a href="https://www.cnbc.com/2026/03/16/stock-market-today-live-updates.html">oil prices jumped over 2% overnight</a> as uncertainty lingered over a U.S.-led coalition to protect shipping.</p>
<p>Traders' attention is turning to central bank action this week with the U.S. Federal Reserve opening a two-day policy meeting on Tuesday.</p>
<p>The Fed has come under sustained pressure from Trump to lower interest rates but the war on Iran means traders are <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html?redirect=/trading/interest-rates/countdown-to-fomc.html">forecasting a hold</a> on interest rates from the central bank when it delivers its monetary policy decision on Wednesday.</p>
<p><a href="https://www.cnbc.com/2026/03/17/asia-pacific-markets-today-nikkei-225-kospi-hang-seng-index.html">Asian markets</a> broadly rose overnight while <a href="https://www.cnbc.com/2026/03/16/stock-market-today-live-updates.html">U.S. stock futures</a> fell slightly.</p>
<p>Earnings come from Prudential and Poste Italiane on Tuesday, while data releases include the latest reading of EU economic sentiment.</p>