European stocks fall as oil prices rise amid Middle East tensions and Germany cuts growth forecast

European stock markets are expected to open lower due to rising oil prices and ongoing geopolitical tensions in the Middle East after the U.S. intercepted Iranian oil tankers. Germany's economy outlook was downgraded, with growth forecasts for 2026 halved to 0.5%, citing the Iran conflict and rising costs for households and businesses. Inflation is projected to increase to 2.7% this year and 2.8% next year. Investors are also watching earnings reports from major European companies and upcoming economic data releases for further market direction.