BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks started off on a weak note on Monday but recovered and gained in strength as the day progressed after Iran said it had responded to a fresh proposal from the U.S.
According to reports, Washington has reportedly proposed a temporary exemption from sanctions on Iranian oil exports.
Earlier, U.S. President Donald Trump warned Iran the 'clock is ticking.' Trump said in a post on Truth Social that Iran 'better get moving, FAST, or there won't be anything left of them,' leading to worries about the U.S. renewing military action.
According to a report from Axios, two U.S. officials said Trump is expected to convene his top national security team in the Situation Room on Tuesday to discuss military options.
The U.S.-Iran war has effectively closed the vital Strait of Hormuz, leading to a spike in crude oil prices and subsequent concerns about inflation and the outlook for interest rates.
The pan European Stoxx 600 gained 0.54%. The U.K.'s FTSE 100 climbed 1.26%, Germany's DAX ended 1.49% up, and France's CAC 40 settled with a gain of 0.44%. Switzerland's SMI edged up 0.16%.
Among other markets in Europe, Austria, Czech Republic, Finland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden ended higher.
Belgium, Denmark, Greece, Iceland and Türkiye closed weak.
In the UK market, Centrica climbed more than 4%. National Grid moved up 3.7%, while Pearson, Relx and SSE gained 3.2%-3.4%.
Shell gained about 3% and BP moved up 2.7%, as oil prices rose amid escalating tensions in the Middle East.
Bunzl, IAG, Tesco, IG Group, Babcock International, BT Group, Imperial Brands, Associated British Foods, Sainsbury (J), Autotrader Group, Compass Group, Admiral Group and Experian gained 2%-3%.
3i Group ended down nearly 6%. Airtel Africa drifted down 4.7%. Mondi ended lower by about 2.2%.
Polar Capital Technology Trust, Diploma and Intertek Group lost 1%-2%. Anglo American Plc also ended weak. The mining giant has agreed to sell its coal mining operation in Australia to privately-owned Dhilmar for $3.88bn.
In the German market, Deutsche Boerse climbed 4.7%. Rheinmetall and Deutsche Telekom also moved up more than 4%.
SAP, Fresenius Medical Care, Symrise, Munich RE, RWE, Hannover RE, Henkel, Allianz, Infineon and Zalando also ended sharply higher.
Commerzbank, Porsche Automobil Holding, Brenntag and Mercedes-Benz closed notably lower.
In the French market, Teleperformance jumped nearly 8.5%. Publicis Groupe rallied 6%. Edenred, AXA, Carrefour, Danone, TotalEnergies, Veolia Environment, Airbus, Eurofins Scientific, Engie and Kering also closed with notable gains.
Legrand, Stellantis, Schneider Electric, BNP Paribas, Air Liquide, Dassault Systemes and STMicroelectronics closed weak.
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