European stocks set for cautious open as oil and yields weigh

European stock markets are expected to open cautiously on Tuesday, with futures indicating a flat performance for the Paris CAC 40 and slight declines for Frankfurt's Dax, as rising oil prices fuel inflation concerns and pressure government bond markets. Investor sentiment remains dampened by the unresolved Middle East conflict, which keeps crude above $100 a barrel and has led to increased expectations for central bank rate hikes. Iran stated it expects a US response to its ceasefire proposal, which includes reopening the Strait of Hormuz, though President Trump said he rejected the offer. Sovereign debt yields are hitting multi-year highs, with the 10-year US Treasury at its highest since 2004 and the German Bund near a 2009 peak. The Reserve Bank of Australia raised rates to 4.60%, while ECB President Lagarde said a measured response remains appropriate.