Despite a ceasefire officially remaining in place between Washington and Tehran since April 8, tensions escalated sharply overnight around the Strait of Hormuz.

Donald Trump maintained that the truce remains applicable despite exchanges of fire between the two sides, dismissing the incidents as a 'trifle'.
Meanwhile, the United Arab Emirates' air defenses were activated following drone and missile fire from Iran. Brent crude, down 3%, is trading around 100 dollars per barrel. At the top of the CAC 40, Stellantis is up 0.61%, defying weakness in the automotive sector after announcing plans to expand its partnership with China's Leapmotor in Spain.

Elsewhere in Europe, British Airways owner IAG is down 2.30% after warning that its annual profit would fall short of initial forecasts due to surging jet fuel costs and persistent supply chain disruptions. Despite solid quarterly results, the group indicated that its fuel bill could reach approximately 9 billion euros this year.

Amadeus (+3.89%) is performing well after posting better-than-expected results. The Spanish group reported adjusted EBITDA of 661.4 million euros for the first quarter, driven by continued robust growth across its business lines, despite a slowdown in air bookings linked to the Middle East conflict.

In Frankfurt, Commerzbank is down 0.81% despite raising several financial targets and announcing a plan to cut 3,000 jobs, as the bank attempts to fend off a hostile approach from Italy's UniCredit (-0.78%).

In Milan, Pirelli is up 2.31% after slightly raising its revenue guidance for the current fiscal year.

On the macroeconomic front, investors will be closely watching the release of the U.S. April jobs report at 2:30 p.m., followed by the University of Michigan consumer sentiment index and wholesale inventories at 4:00 p.m.

In the foreign exchange market, the euro is up 0.34% at 1.1771 dollars.