European Markets Dip as Trump Maintains Hormuz Blockade Despite Ceasefire Extension

European equity markets are expected to start Wednesday in the red, reflecting investor anxiety over the ongoing blockade of Iranian ports and the fragile state of diplomatic relations. The U.K.'s FTSE, Germany's DAX, and France's CAC 40 are all projected to open approximately 0.3% lower, according to IG data. U.S. President Donald Trump has extended the two-week ceasefire with Iran, citing a "seriously fractured" government in Tehran. The extension remains conditional, with the U.S. demanding a "unified proposal" to end the conflict involving the U.S. and Israel before the ceasefire expires. Despite the extension, the outlook for peace remains clouded. Reports indicate that Vice President JD Vance's planned trip to Pakistan for peace negotiations has been postponed, while Iranian state media reported that Tehran's negotiators would not attend further talks. The refusal to lift the blockade of the Strait of Hormuz—a critical global energy artery—has capped any potential gains from the ceasefire. President Trump stated that lifting the blockade would jeopardize the possibility of a final deal, asserting that the blockade is necessary to maintain leverage. Beyond geopolitics, markets are eyeing a heavy slate of corporate earnings from firms including L'Oreal, ABB, and Nordea Bank. Additionally, investors are awaiting U.K. inflation data for March, which will provide the first official glimpse into the economic impact of the conflict and the preceding surge in energy costs.