European stock markets opened higher on Tuesday but later traded in mixed territory as investors tracked developments in the Middle East and their potential impact on global energy supplies.

Early gains across major indices faded as uncertainty surrounding the situation between the United States and Iran weighed on sentiment. Traders remained focused on the situation in the Strait of Hormuz, a vital corridor for global oil and gas shipments that has been at the center of recent tensions.

Oil prices pulled back in early trading after a sharp rise in the previous session, though they stayed well above recent averages. Brent crude was down 1.38 percent at $112.86 a barrel, while West Texas Intermediate crude fell 2.27 percent to about $104 per barrel. Prices had surged close to 6 percent on Monday, briefly pushing Brent above $114, as concerns grew over possible supply disruptions.

Equity markets in Europe showed mixed performance. Germany’s DAX rose 0.8 percent, while France’s CAC 40 gave up early gains to slip into negative territory. The UK’s FTSE 100 hovered around flat levels, and Italy’s FTSE MIB posted a stronger gain of 1.2 percent.

Trading volumes were relatively light, with several major Asian markets closed for holidays. In the region, Hong Kong’s Hang Seng Index declined 1.1 percent, while Australia’s S&P/ASX 200 dropped 0.5 percent. Taiwan’s TAIEX also edged lower.

The fragile ceasefire between Washington and Tehran faced renewed strain on Monday. US officials said military forces had sunk several Iranian boats that were approaching civilian vessels, while two US-flagged ships managed to pass through the Strait of Hormuz under protection. Despite these movements, much of the key waterway remains effectively restricted, raising concerns about the flow of energy supplies.

The standoff intensified after Donald Trump introduced what has been described as “Project Freedom,” a plan aimed at escorting stranded commercial vessels through the contested route. The United States has also imposed a maritime blockade on Iranian ports, adding to the pressure on Tehran.

Before the escalation began earlier this year, oil prices had been trading near $70 a barrel. The recent surge highlights the sensitivity of energy markets to geopolitical developments in the Gulf region.

Investors continue to monitor the situation closely, with further shifts in markets likely as events unfold and as clarity emerges on the status of shipping through one of the world’s most critical energy corridors.

The United Arab Emirates has signed a major trade agreement with South Korea, marking a significant step in the Gulf region’s growing economic alignment with Asian markets. The deal was announced just one day after the UAE confirmed its exit from OPEC, highlighting a broader shift in its trade and investment strategy.

The agreement, known as a Comprehensive Economic Partnership Agreement (CEPA), aims to strengthen economic ties between United Arab Emirates and South Korea by reducing trade barriers and boosting cross-border investment. Under the terms of the pact, tariffs will be eliminated or reduced on more than 91 percent of goods traded between the two countries.

Officials say the deal is expected to increase trade flows and create new opportunities across sectors such as technology, manufacturing and logistics. Non-oil trade between the two countries reached $6.9 billion in 2025, and both sides anticipate further growth following the agreement’s implementation.

Thani bin Ahmed Al Zeyoudi said the CEPA would open new avenues for exporters and deepen cooperation in key industries. He added that the agreement reflects the UAE’s commitment to expanding its global trade network and strengthening partnerships beyond traditional energy markets.

The deal is also notable as South Korea’s first trade agreement with a country in the Gulf Cooperation Council and the wider Middle East and North Africa region. Analysts say it comes at a time when global supply chains are being reshaped by geopolitical tensions and shifting economic priorities.

At the same time, Qatar is also moving to enhance its economic relationship with Seoul. In recent days, Ahmed bin Mohammed Al Sayed led a delegation to South Korea for discussions focused on trade and investment.

Talks have covered a range of sectors, including artificial intelligence, semiconductors, biotechnology and advanced manufacturing, reflecting a shared interest in innovation-driven growth. The engagement signals a broader push by South Korea to strengthen ties with Gulf economies, while Gulf states seek to diversify their economic partnerships.

The UAE’s agreement with South Korea is part of a wider strategy to build new trade corridors with Asia, reducing reliance on traditional Western markets and energy exports. The move aligns with long-term economic plans aimed at diversification and sustainable growth.

As global trade patterns continue to evolve, Gulf countries are positioning themselves as key players in connecting markets across regions. The latest developments with South Korea underline the increasing importance of Asia in shaping the future direction of Gulf economies.

Europe is expected to strengthen its position in the global billionaire landscape over the next five years, with the region’s share of the world’s wealthiest individuals set to rise slightly as billionaire numbers continue to surge worldwide.

According to Knight Frank’s 2026 Wealth Report, the global billionaire population is projected to increase from 3,110 in 2026 to 3,915 by 2031, representing a 26% rise. This follows a 14% increase over the previous five years, when the number of billionaires climbed from 2,723 in 2021.

Europe is forecast to play a significant role in that expansion. The continent’s billionaire count is expected to grow from 780 in 2026 to 994 by 2031, an increase of 27%. That would lift Europe’s share of the global billionaire population from about 25% to 25.4%.

Knight Frank’s global head of research, Liam Bailey, said the figures reflect a major shift in wealth creation patterns across the world, even amid economic uncertainty and geopolitical instability.

Within Europe, Poland is expected to record the fastest growth. Its billionaire population is projected to more than double, rising from 13 to 29 by 2031. Sweden follows with an 81% increase, from 32 to 58 billionaires, while Denmark is expected to see its total rise from 12 to 21. Norway is also forecast to post strong growth, increasing from 17 to 26 billionaires.

Austria is projected to record a 50% rise, while Spain’s billionaire population is expected to grow by 40%, reaching 53. Italy, one of Europe’s largest economies, is forecast to increase from 61 to 82 billionaires by 2031. Turkey is also expected to see notable growth, rising from 35 to 46 billionaires.

The report highlights the growing prominence of the Nordic region, with three of Europe’s four fastest-growing billionaire markets located there.

Globally, Saudi Arabia is expected to record the strongest growth, with its billionaire population rising by 183%, from 23 to 65. India is forecast to lead in total billionaire numbers among the fastest-growing markets, reaching 313 by 2031.

Asia-Pacific will remain the world’s largest billionaire region, accounting for 36% of the global total in 2026. North America, while continuing to add billionaires in absolute terms, is expected to see its global share decline from 31% to 27.8% by 2031.

Knight Frank’s Rory Penn said the world’s wealthiest individuals are becoming increasingly selective about where they invest and live. Security, political stability and the rule of law are now among the most important considerations for ultra-high-net-worth families.

As wealth continues to expand across regions, Europe appears poised to remain a key destination for both capital and the world’s richest investors.