European stocks are poised to open slightly higher on Friday as U.S. President Donald Trump announced a delay in military action against Iran’s energy infrastructure, extending the deadline for Tehran to reopen the Strait of Hormuz. Despite this, tensions remain high, with Iran mobilizing over a million troops and fresh strikes reported across the region. The Pentagon is contemplating deploying up to 10,000 additional troops to the Middle East, further complicating the geopolitical landscape.

The implications for the financial markets are significant. Oil prices are on track for their steepest weekly decline in six months, with Brent crude falling below $107 a barrel, while gold prices rebounded after a prior drop. U.S. Treasury yields have surged, raising concerns about interest rates and financial conditions, as the OECD warns of rising inflation rates across G20 countries.

Market professionals should closely monitor the evolving situation in the Middle East and its impact on energy prices, inflation, and overall market stability, as these factors could influence central bank policies and investment strategies in the coming weeks.

Source: nasdaq.com