A look at the day ahead in European and global markets from Gregor Stuart Hunter The U.S.-Iran ceasefire agreed this week looks increasingly strained as Israeli attacks on Lebanon brought retaliation from Hezbollah, while the lack of ships resuming passage through the Strait of Hormuz prompted a fresh tirade from the U.S. leader.
Investors were nervous as Iran said Israel’s Lebanon attacks violate its agreement with the United States, stalling risk-on sentiment that had followed the deal. S&amp;P 500 e-mini futures (EScv1) were flat on Friday while MSCI’s broadest index of Asia-Pacific shares ex-Japan (.MIAPJ0000PUS) was up 0.8%.
Israeli Prime Minister Benjamin Netanyahu on Thursday said he was seeking talks with Beirut, a day after the worst Israeli bombardment of the war killed more than 300 people in Lebanon. On Friday, Hezbollah responded by launching a missile at Israel, triggering air raid sirens including in Tel Aviv.
Meanwhile, U.S. President Donald Trump berated Iran on Truth Social for doing a “very poor job” of allowing ships through the strait. “That is not the agreement we have!” he wrote.
Before the war, one-fifth of global oil and gas shipments passed through Strait of Hormuz. On Thursday, traffic was well below 10% of normal volume as ships navigated both mines and bureaucracy, with each vessel requiring Iranian approval.
The strait’s effective closure during the U.S. and Israel’s six-week war with Iran has sent shockwaves through global markets as oil prices surged and energy supplies tightened.
In a sign the conflict is feeding cost pressure beyond the region, factory-gate prices in China rose for the first time in three and a half years in March, official data showed.
Brent crude (LCOc1) rose 0.7% to $96.57 a barrel on supply fear, with Japanese Prime Minister Sanae Takaichi on Friday saying Japan plans to release 20 days’ worth of oil reserves from May to ensure stable domestic supply.
Also in Japan, the Nikkei 225 (.N225) rose 1.6% as shares in Fast Retailing (9983.T) set a record after the Uniqlo owner on Thursday reported a profit jump that beat market estimates.
In early European trade, pan-region futures (STXEc1) were up 0.6%, German DAX futures (FDXc1) were up 0.6% and FTSE futures (FFIc1) were up 0.2%.
Key developments that could influence markets on Friday:
<ul>
<li>Germany CPI, HICP for March</li>
<li>Germany current account balance for February</li>
<li>U.K. auction of 1-month, 3-month, 6-month government debt</li>
</ul>
Uniqlo owner revises up annual earnings forecast
<img src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/FAST%20RETAILING-RESULTS/klvylmqqjpg/chart.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" width="1420" height="1078" original-src="https://imageproxy.pbkrs.com/https://www.reuters.com/graphics/FAST%20RETAILING-RESULTS/klvylmqqjpg/chart.png"/>

The off-table confrontation has escalated! Iran's Foreign Minister presented ceasefire conditions and announced a comprehensive management plan for the Strait of Hormuz. Trump, in turn, decisively canceled his trip to Pakistan and maintained the blockade. Will this "power versus power" contest ignite war or lead to a turning point? Feel free to share your views in the comments section.

The off-table confrontation has escalated! Iran's Foreign Minister presented ceasefire conditions and announced a comprehensive management plan for the Strait of Hormuz. Trump, in turn, decisively canceled his trip to Pakistan and maintained the blockade. Will this "power versus power" contest ignite war or lead to a turning point? Feel free to share your views in the comments section.

With neither side willing to back down, is there any hope for a second round of negotiations?

9983

- The U.S.-Iran ceasefire appears strained following Israeli attacks on Lebanon and Hezbollah's retaliation, impacting investor sentiment.  
- The Strait of Hormuz remains heavily restricted, causing significant disruptions in global oil supplies and contributing to rising prices.  
- Key upcoming economic indicators include Germany's CPI for March and the U.K.'s government debt auction.

MORNING BID EUROPE-'That is not the agreement we have!'