European Shares Set To Drift Lower After US Strikes In Iran

(RTTNews) - European stocks may open lower on Monday after the United States attacked three Iranian nuclear facilities over the weekend and Iran vowed retaliation, saying it "reserves all options."

Iran's military commander Hatami has said that every time America has committed crimes against Iran, it received a decisive response, adding, that it will be the same this time, according to Fars News Agency.

U.S. President Donald Trump suggested that if Iran's current regime can't "Make Iran Great Again," a regime change may not be off the table.

All eyes remain on Strait of Hormuz after Iran's parliament approved its closure, although the final approval lies with the Supreme National Security Council.

U.S. Secretary of State Marco Rubio has called on China to prevent Iran from closing one of the world's most important shipping routes.

Iran is the world's ninth-biggest oil-producing country, with output of about 3.3 million barrels per day. It exports just under half of that amount and keeps the rest for domestic consumption.

Any disruption to the supply of oil would have profound consequences for the global economy.

The dollar index rose on safe-haven demand, sending gold prices lower below $3,360 per ounce.

Oil prices were up nearly 1 percent in Asian trade, after having jumped more than four percent to hit their highest price since January earlier in the session on fears of a broader regional war and concerns of disruption to energy markets.

Asian markets were mixed, with mainland China and Hong Kong markets edging up slightly, reversing early losses.

U.S. stocks fell broadly on Friday as investors reacted to rising Middle East tensions and pondered future rate decisions.

The S&P 500 eased 0.2 percent and the tech-heavy Nasdaq Composite declined half a percent after reports emerged the U.S. may revoke waivers for some semiconductor firms.

The narrower Dow finished marginally higher as Fed Governor Christopher Waller said that he doesn't expect tariffs to boost inflation significantly and that there is room for a rate cut as early as July.

European stocks ended mostly higher on Friday after declining for three straight sessions. The pan-European STOXX 600 closed 0.1 percent higher.

The German DAX rallied 1.3 percent and France's CAC 40 added half a percent while the U.K.'s FTSE 100 slipped 0.2 percent after the release of weak retail sales data.