European Shares Rise on UK Housebuilder Rally Amid Oil Price Rebound

European shares rose on Monday as British housebuilders' stocks surged after the government confirmed it would revive an equity loan programme for first-time buyers in next month's budget. The pan-European STOXX 600 was up 0.48% at 641.73 points by 0829 GMT, with most major regional bourses trading higher.

The rally in British housebuilders' stocks offset pressure from a rebound in oil prices and elevated bond yields. Shares of Persimmon, Barratt Redrow, Taylor Wimpey, and Vistry rose between 13.5% and 15%, while Britain's blue-chip FTSE 100 was up 0.58%.

However, gains were restrained by a 3% jump in Brent crude prices after US President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz and end the conflict. Shares of European energy companies rose 0.6%, while miners slumped 1.7% as precious metals fell due to a stronger dollar.

Bond yields remained elevated, with Germany's 10-year government bond yield at its highest level since June 2009. Central banks have responded to oil-driven inflationary pressures with rate hikes, including the European Central Bank's second increase this year.