Europe's Markets Edge Higher as Oil Prices Surge
European shares were little changed on Tuesday as oil prices rose after efforts to end the U.S.-Iran war hit an impasse. The pan-European STOXX 600 was trading at 659.84, fluctuating between modest gains and losses near the record highs reached earlier this month.
Rising energy prices supported oil and gas stocks, but concerns that a prolonged disruption around the Strait of Hormuz could stoke inflation and cloud the outlook for monetary easing kept broader risk appetite in check.
The energy sector jumped 1.4% as oil prices touched their highest level so far this month. U.S. President Donald Trump on Monday responded to Iran's conditions for a peace deal with demands of his own, including compensation for people killed in wars, attacks, and protests in a rhetorical escalation that could further complicate efforts to reopen the key oil shipping route.
Gordon Kerr, European Macro Strategist at KBRA, said 'The pause this week reflects some caution around the Iran conflict and renewed pressure on oil prices. That is the key near-term risk for European markets.' Technology stocks rose 0.5%, with Europe's top performers so far this year up about 24% year to date.