European stocks set to open higher Tuesday as markets digest geopolitical shifts.

European stocks set to open higher Tuesday as markets digest geopolitical shifts. London's FTSE 100 may decline at open following oil price volatility tied to reports that U.S. President Donald Trump is considering ending military operations against Iran. The administration aims to achieve core objectives including crippling Iran's navy and missile capabilities while restoring normal operations in the strategically critical Strait of Hormuz. Energy sector movements will likely dominate trading as investors assess implications of potential U.S. policy changes in the Middle East. Market sentiment remains cautious despite broader European gains as traders weigh geopolitical risks against economic fundamentals.