European stock futures signaled a positive open on Tuesday, with investors turning their attention to upcoming inflation data that may offer further insight into the economic consequences of the U.S.-Iran war.

Futures for the regional Stoxx 50 index suggested a rebound in sentiment, reflecting cautious optimism among market participants.

The anticipated data release is seen as a critical barometer for gauging the broader economic impact of the ongoing geopolitical tensions.

Renewed diplomatic efforts between the U.S. and Iran have lifted investor sentiment in recent sessions, with European markets showing signs of recovery.

However, the uncertainty surrounding the conflict continues to weigh on market psychology, with traders closely monitoring developments for any signs of escalation or de-escalation.

The focus on inflation data comes amid broader concerns about how prolonged geopolitical instability could affect global supply chains and energy prices.