Why are European stock futures falling and oil prices rising according to the news?

European stock futures are falling—down 1.3% for the STOXX 600, 1.3% for Germany's DAX, and 1.1% for France's CAC 40—due to deteriorating risk sentiment following a report that the U.S. is considering new military action against Iran amid stalled negotiations. Simultaneously, oil prices surged up to 7% to $125 a barrel after an Axios report indicated that then-U.S. President Donald Trump was set to receive a military briefing on new plans aimed at breaking the negotiating deadlock with Iran.

What are the key central bank decisions investors are awaiting, and what is the market expectation for each?

Investors are awaiting rate decisions from the European Central Bank (ECB) and the Bank of England (BoE), both due later the same day. The news states that both central banks are 'widely expected to keep rates on hold', but the ECB is also 'likely to signal a rate hike for as soon as June' to address 'energy-driven inflationary pressures'. This expectation follows the U.S. Federal Reserve's hawkish tone, which had caused Treasury yields to spike and weighed on global bonds.