Key Takeaways

• Muted European open: The Stoxx 600 and DAX both rose 0.2%, while the CAC 40 and FTSE 100 traded broadly unchanged.
• Trump’s Hormuz push: The president announced a new effort over the weekend to help vessels stranded in the Strait of Hormuz, though details remain scarce.
• Mine danger flagged: The Joint Maritime Information Centers warned traditional routes are “extremely hazardous” due to naval mines that “have not been fully surveyed and mitigated.”
• Enhanced security zone: The U.S. has established a new security area south of typical shipping routes, with vessels told to coordinate with Omani officials.
• Strait chokepoint: The waterway carries a fifth of global oil and has been virtually locked down by Iran since late February.
• Oil still elevated: Brent crude rose 0.8% to $109.04 per barrel, easing from last week’s spike but still well above pre-war levels.
• Bond yields jump: Energy-driven inflation fears and hawkish central bank signals have lifted yields, adding pressure on equities.
• AI boom rolls on: Some $751 billion has been spent on AI infrastructure so far this year — exceeding initial estimates by $80 billion and 83% higher than 2025 outlays, according to Reuters.

European stock markets kicked off the trading week on a muted note, as investors trained their attention on a fresh effort by the United States to reopen the Strait of Hormuz.

By 03:08 ET (07:08 GMT), the pan-European Stoxx 600 had gained 0.2% and Germany’s DAX had inched up 0.2%, while France’s CAC 40 and the U.K.’s FTSE 100 were broadly unchanged.

Trump’s Hormuz Rescue Bid Faces Hidden Dangers

Over the weekend, U.S. President Donald Trump announced a new initiative to help vessels stranded in the Strait of Hormuz navigate out of the narrow waterway, although he provided few additional details.

On Monday, the Joint Maritime Information Centers reported that the U.S. had established an “enhanced security area” south of typical shipping routes, telling ships to coordinate closely with Omani officials due to anticipated heavy traffic volume, according to the Associated Press.

Traditional routes through the strait are considered “extremely hazardous” due to the presence of naval mines that “have not been fully surveyed and mitigated,” the center said, according to the AP.

Unblocking the strait has emerged as a critical concern for global markets. The conduit — a chokepoint located off Iran’s southern coast through which a fifth of the world’s oil flows — has been virtually shut down by Tehran since the U.S. and Israel launched their joint assault on the country in late February.

The closure has fueled a sharp climb in oil and gas prices, threatening economies around the world and casting a long shadow over the outlook for households and businesses alike.

Oil Stays Elevated, Yields Rise

Brent crude futures, the global oil benchmark, were last trading higher by 0.8% at $109.04 a barrel — easing from last week’s spike but still well above pre-war levels.

Concerns over energy-fueled inflationary pressures, combined with signals that central banks may be considering more hawkish policy trajectories, have driven a notable rise in bond yields — further weighing on equities.

AI Investment Boom Surges On

Beyond the war, analysts have also been closely tracking the explosive boom in artificial intelligence investment. So far this year, some $751 billion has been spent on supporting the nascent technology — outpacing initial estimates at the start of the latest quarterly earnings season by $80 billion and running 83% higher than 2025 outlays, according to Reuters.