European markets wobble as Trump’s Iran ultimatum looms

European stock markets opened with mixed movements on April 7 as investors awaited the expiration of US President Donald Trump’s ultimatum to Iran, set for April 8 midnight GMT.

In Paris, the CAC 40 rose 0.51% to 8,003.11 points, while Frankfurt’s DAX slipped 0.03% and London’s FTSE 100 gained 0.15%. The EuroStoxx 50 fell 0.11%, the FTSEurofirst 300 edged up 0.06%, and the Stoxx 600 advanced 0.11%, Boursorama reports.

Markets remain on edge as Trump’s ultimatum demands a ceasefire and the immediate reopening of the Strait of Hormuz, warning of “total destruction” if Iran fails to comply.

“Any execution of threats against Iranian energy infrastructure would mark a significant escalation, increasing the risk of retaliatory action that could further disrupt Gulf energy facilities,” said Vasu Menon, Chief Investment Strategist at OCBC in Singapore.

The heightened tensions in the Middle East have renewed concerns about stagflation—high inflation combined with weak economic growth—potentially affecting global interest rate trajectories.

Dimitar Radev, a member of the European Central Bank’s Governing Council, said the ECB must be prepared to raise rates swiftly if persistent price pressures emerge. Eurozone private sector PMI data is also expected later in the day, providing further insight into economic trends.

On the corporate front, Vivendi shares jumped more than 12% in Paris, and Bolloré rose nearly 7% following an announcement by Bill Ackman’s Pershing Square fund proposing to acquire Universal Music Group. Shares of Universal Music Group surged over 18% in Amsterdam.

By Vafa Guliyeva