European Stocks Hold Near Three-Week Lows as Investors Await Iran Sanctions: DAX, CAC, FTSE100

European equities were little changed on Monday, remaining close to three-week lows as escalating economic tensions between the United States and Iran kept investors cautious. A modest retreat in crude oil prices provided some relief, but broader risk appetite remained subdued.

The pan-European Stoxx Europe 600 Index slipped 0.1% in early trading, keeping the benchmark around levels last seen in early August.

Germany’s DAX, France’s CAC 40 and London’s FTSE 100 were all broadly unchanged as investors awaited further details on Washington’s planned measures against Tehran.

U.S. Threatens Iran With “greatest financial offensive”

Geopolitical developments in the Persian Gulf remained the principal focus after Washington intensified its economic pressure on Iran over the weekend.

The U.S. threatened Tehran with what it described as “the greatest financial offensive ever marshalled,” with sweeping sanctions expected to be announced on Monday. The measures are intended to target foreign countries and trading partners that continue to provide economic support to Iran.

Iranian officials responded by threatening to halt all energy exports originating from the Persian Gulf if Washington continues its economic campaign.

Markets were awaiting a press conference from U.S. Treasury Secretary Scott Bessent scheduled for 1:00 p.m. EDT on Monday, when further details of the sanctions are expected.

Brent crude futures fell around 1.5% to approximately $91.80 a barrel on Monday, offering some respite after prices climbed 5% last week.

However, continuing disruption to shipping through the Strait of Hormuz is restricting seaborne crude oil and LNG movements. The reduced flows are maintaining a supply-risk premium in energy markets and adding to concerns about global inflation.

Nvidia Earnings Put AI Spending in the Spotlight

Nvidia (NASDAQ:NVDA) is due to report second-quarter results after the U.S. closing bell, providing a major test for global technology stocks and investor enthusiasm surrounding artificial intelligence.

Attention will focus on whether continued AI capital expenditure can support elevated valuations among the world’s largest technology companies.

AI hyperscalers have increasingly turned to credit markets, issuing substantial amounts of debt to finance data-centre expansion. Any evidence of slowing revenue growth or weaker-than-expected guidance from Nvidia could therefore weigh on technology shares, including European markets with significant exposure to the sector.

Jackson Hole Speech Could Shape Rate Expectations

Federal Reserve Chair Kevin Warsh is also scheduled to deliver a keynote address at the Jackson Hole Economic Policy Symposium.

Investors in bond and equity markets will closely examine his comments for indications of whether the Federal Reserve intends to leave interest rates unchanged in September following a divided 9-3 FOMC vote.

Persistent inflationary pressure linked to elevated energy prices could complicate the policy outlook and potentially increase the likelihood of another rate increase.

BW Offshore Slides After Profit Forecast Cut

Among individual European stocks, BW Offshore (TG:XY81) fell 14% after the company lowered its pre-tax profit forecast.

The sharp decline stood out during an otherwise subdued European session dominated by geopolitical uncertainty, energy-market risks and anticipation ahead of major U.S. economic and corporate events.

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