European stocks traded slightly higher on Monday morning, as investors monitored developments in US-Iran relations and looked ahead to key central bank meetings later this week.
The pan-European Stoxx 600 index was up more than 0.1% , recovering from earlier losses in the session.
Major regional indices posted modest gains, while sector performance remained mixed.
France’s CAC 40 rose 0.19% to 8,173.54, while Germany’s DAX climbed 0.42% to 24,231.11.
Italy’s FTSE MIB gained 0.13%, and Spain’s IBEX 35 advanced 0.40%.
The U.K.’s FTSE 100 edged up 0.04%.
Energy stocks lead gains as oil prices climb
The oil and gas sector led gains, rising 0.9% as energy prices moved higher.
Retail stocks also performed well, gaining more than 0.7%.
In contrast, food and beverage stocks fell 0.5%, while mining stocks slipped 0.1%.
The decline in miners came amid concerns over ongoing supply chain bottlenecks around the Strait of Hormuz.
Oil prices surged on Monday.
Brent crude rose more than 2% to $107.46 per barrel, while US West Texas Intermediate gained 1.8% to $96.14.
Iran-US tensions remain in focus
Geopolitical developments remained a key driver for markets. Iran reportedly made a new proposal to the United States to reopen the Strait of Hormuz and end the conflict, while suggesting that nuclear talks be postponed, as reported by Axios, citing a US official and sources familiar with the matter.
This follows comments from Donald Trump, who said over the weekend that he had scrapped plans to send envoys to Pakistan for talks with Iran.
“Too much time wasted on traveling, too much work!” Trump wrote on Truth Social.
He added, “Nobody knows who is in charge, including them. Also, we have all the cards; they have none! If they want to talk, all they have to do is call!!!”
Meanwhile, Iran’s Foreign Ministry spokesman Esmaeil Baqaei stated that no meetings between Tehran and Washington were planned.
Nordex surges on strong earnings
Among individual stocks, Nordex topped the Stoxx 600, jumping more than 12% after reporting strong first-quarter results.
The company posted an 11% rise in sales to 1.6 billion euros, while net income increased to 53.6 million euros, compared to 7.9 million euros in the same period a year earlier.
Other wind energy firms also gained.
Vestas Wind Systems rose 3%, while Oersted advanced 3.9%.
Central bank meetings in spotlight
Investor attention is now turning to major central bank decisions later this week.
The Federal Reserve is set to announce its policy decision on Wednesday, followed by the European Central Bank and the Bank of England on Thursday.
The Federal Reserve meeting could mark the final one chaired by Jerome Powell before Kevin Warsh is expected to take over in May.
The US Department of Justice recently dropped its criminal probe into Powell, leading Senator Thom Tillis to lift his block on Warsh’s confirmation.
Economists broadly expect the central banks to hold interest rates steady this month, while signalling the possibility of future hikes.
Investors are also monitoring developments in the United States following a security incident in Washington, DC.
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