Middle East Tensions Rattle European Stock Markets

European stock futures dropped sharply on Monday, sliding over 1%, as renewed Middle East tensions unnerved investors following the U.S. seizure of an Iranian cargo ship.

Tensions have escalated as Iran vows retaliation, while futures tracking the STOXX 600, Germany's DAX, and France's CAC 40 reported major dips despite increased movement through the crucial Strait of Hormuz.

Amidst these developments, Iran rejected reports of fresh peace talks with the U.S., adding uncertainty as the ceasefire wanes and oil prices surge, impacting European economies reliant on energy imports.

(With inputs from agencies.)