European stocks traded cautiously at the start of the week as fresh U.S.-Iran strikes weakened hopes for a near-term peace deal. The Stoxx 600 fell 0.2%, while investors weighed the risk of further escalation in the Middle East.
Oil prices surged more than 3%, with Brent crude climbing to around $94 per barrel amid concerns over potential supply disruptions. At the same time, Eurozone bond yields rose as traders priced in the possibility of renewed inflationary pressure from higher energy costs.
Markets remain focused on diplomatic efforts and the reopening of the Strait of Hormuz, a key global energy route, as geopolitical tensions continue to drive sentiment.
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