European stock markets are expected to open in negative territory on Tuesday, with renewed concerns over the Iran war dampening investor sentiment.

The Stoxx 600, a broad gauge of European equities, is seen trading lower as traders factor in the geopolitical risks.

Germany's DAX and France's CAC 40 are both projected to open down by 0.4%, while the U.K.'s FTSE 100 is expected to remain flat.

The cautious tone follows reports of escalating tensions in the region, which have raised fears of broader regional instability and potential disruptions to global energy markets.

The market reaction reflects a broader trend of heightened sensitivity to geopolitical developments.

Recent weeks have seen European markets oscillate between optimism and caution, with investors in the Middle East and its potential implications for global trade and energy flows.