Before the bell: Europe soft as US kicks off earnings season

European shares are set to open lower on Tuesday as escalating U.S.-Iran tensions push oil prices higher, while investors brace for the start of the U.S. earnings season and key June inflation data that could shape expectations for interest rates.

Energy majors are expected to provide some support for the STOXX 600 as oil rose to a one-month high, with Equinor, Eni, Repsol, Shell and BP rising around more than 1% in premarket trading.

BP expects upstream production to fall in the second quarter, in line with previous guidance, due in part to the effects of the crisis in the Middle East.

EuroSTOXX50, DAX and FTSE futures fall around 0.3%, although U.S. futures pointed to modest gains later on Wall Street after Monday's lower close on weakness across the tech sector.

Evotec is set to slump around 20% after the German drug discovery company sharply cut its full-year outlook following weak preliminary second-quarter results.

In telecoms, Ericsson falls 4.1% despite reporting second-quarter core earnings above expectations, as investors focus on rising costs and a cautious outlook.

Hapag-Lloyd is indicated higher after raising its annual earnings outlook on strong freight demand and robust spot rates.

In banks, DNB reported slightly weaker-than-expected quarterly earnings, while airline and travel-related stocks including Lufthansa and Fraport are indicated lower as higher oil prices weigh on the sector.

The broader backdrop remains cautious. Investors are turning their attention to the opening of the U.S. reporting season, with JPMorgan, Goldman Sachs, Bank of America, Wells Fargo and Citigroup due later in the day.