European Shares Seen Lower At Open As US-Iran Tensions Escalate

(RTTNews) - European stocks are seen opening on a tepid note Wednesday as investors weigh U.S.-Iran tensions and await key U.S. inflation reading for fresh insights into market expectations for future interest rates in the face of rising energy-driven inflation risks.

Analysts estimate that the U.S. inflation rate may have climbed to 4.2 percent in May, which could be its highest level in three years in the face of increased living costs.

U.S. stock index futures edged lower as the U.S. military launched fresh strikes against Iran in a very strong, powerful response to the downing of a U.S. Army Apache helicopter off the Oman coast.

It was said that U.S. fighter jets struck Iranian air defense systems and radar sites near the Strait of Hormuz.

Iran also launched missiles and drones toward U.S. targets in the region and warned that "heavier and broader" attacks would follow if the United States continued aggression against Iran.

Iranian Foreign Minister Abbas Araghchi said that no attack or threat from the United States will be left unanswered.

"Despite its defeats on the battlefield, the U.S. opted to test our determination," Araghchi wrote on X and also asked foreign forces to leave the region.

Asian markets were broadly lower as a recovery in chipmaking stocks fizzled out and hopes for a U.S.-Iran peace deal waned.