19.03.202606:29:38UTC+00European Stocks Set for Sharp Drop at Open

European equity markets are poised to open sharply lower on Thursday, pressured by renewed attacks on energy infrastructure in the Middle East and a hawkish pause from the US Federal Reserve. The Fed left its policy rate unchanged, as anticipated, but flagged upside risks to inflation stemming from the conflict involving Iran.

The European Central Bank and the Bank of England are also expected to keep interest rates on hold later today as policymakers evaluate the economic fallout from the Middle East crisis. Investors will additionally focus on UK employment figures for fresh insight into labor market conditions.

Meanwhile, Brent crude futures jumped above $112 per barrel after Iran launched missile strikes on a Qatari facility that hosts the world’s largest LNG export terminal. The attack was one of several energy assets Tehran had vowed to target in response to an Israeli strike on Iran’s South Pars gas field. In premarket trading, futures on the Euro Stoxx 50 and Stoxx 600 indices were down 1.7% and 1.5%, respectively.