European stocks mixed on Monday as investors weighed renewed U.S.-Iran hostilities, rising oil prices and fading expectations for a near-term nuclear agreement with Tehran. The pan-European Stoxx 600 ended just below the flatline, while major Asian markets posted stronger gains earlier in the session. With U.S. markets closed for the Labor Day holiday, geopolitical developments and energy prices remained central to global market sentiment.

France’s CAC 40 was the strongest performer among the major European benchmarks, gaining 0.33%. Italy’s FTSE MIB followed with a 0.25% advance. By contrast, the U.K.’s FTSE 100 slipped almost 0.1%, while Germany’s DAX declined 0.25%.

The uneven performance reflected a broader market struggle between support from technology and energy stocks and renewed concerns about inflation, economic growth and the potential duration of the conflict in the Middle East.

European Stocks Mixed as Energy Shares Gain

The Stoxx 600 finished Monday just below unchanged after spending much of the session in narrow territory. Energy-related shares provided support as crude oil prices moved higher, while weakness in healthcare and financial stocks limited the broader advance.

Oil and gas was the standout European sector, rising 1.29% as investors assessed the latest developments involving the United States and Iran. Technology stocks also performed strongly, adding almost 1.1%.

Other major sectors moved in the opposite direction. Healthcare stocks fell 0.94%, while financial services declined 0.91%. The contrasting sector performance highlighted how the renewed escalation is affecting different parts of the European market in different ways.

The latest moves came after U.S. forces struck three Iranian oil tankers over the weekend. U.S. Central Command said the strikes followed ballistic missile attacks by Iran toward two U.S. Navy warships operating in regional waters. The military said no American personnel were harmed in those attacks.

<a href=”https://www.centcom.mil/MEDIA/PUBLIC-RELEASES/Article/4591744/centcom-destroys-3-irgc-oil-tankers-after-iran-targets-2-us-navy-warships/” target=”_blank” rel=”noopener noreferrer”>U.S. Central Command statement on the tanker strikes</a>

The developments have added another layer of uncertainty for investors already watching energy markets closely. Higher crude prices can increase costs across the economy, potentially complicating efforts by central banks to contain inflation while maintaining economic growth.

That pressure was visible in Monday’s European trading session. Although the major indexes remained relatively stable, the sector rotation toward energy and away from healthcare and financials showed where investors were placing their attention as the conflict continued to influence commodity markets.

Asian Markets Rise as Technology Shares Lead

Asian markets provided a stronger backdrop earlier in the global trading day. Japan’s Nikkei 225 closed 2.12% higher, while South Korea’s Kospi surged 4.61%. Mainland China’s CSI 300 gained 0.59%, and Australia’s S&P/ASX 200 edged marginally higher.

The scale of the gains in Japan and South Korea contrasted sharply with the more restrained performance in Europe. Technology shares were an important source of strength in the region, helping major Asian benchmarks advance despite continued uncertainty surrounding the Middle East.

<a href=”https://apnews.com/article/5fed4e21cb3f80eef06087217dbbd9f7” target=”_blank” rel=”noopener noreferrer”>Asian market performance and technology stocks</a>

South Korea’s Kospi recorded the largest gain among the major benchmarks listed, rising more than 4.6%. Japan’s Nikkei also advanced strongly, while mainland Chinese equities posted a more modest increase.

The gains came as investors balanced two competing forces. On one side, technology shares provided momentum to Asian markets. On the other, renewed military activity involving the United States and Iran kept energy prices elevated and increased the risk that higher fuel costs could feed into broader inflation.

That tension is particularly important for global markets because oil prices affect transportation, manufacturing and consumer costs well beyond the energy sector. A sustained rise in crude can therefore influence expectations for interest rates as investors assess whether central banks may need to maintain tighter monetary conditions.

For European stocks mixed across Monday’s session, the energy rally offered some protection against those broader concerns. However, the limited movement in the Stoxx 600 showed that investors remained cautious rather than committing strongly to risk.

U.S. markets were closed for the Labor Day holiday, reducing global trading activity and leaving European and Asian markets to absorb much of the immediate reaction to the latest developments in the Middle East.

Oil Prices Rise as Iran Nuclear Deal Prospects Fade

Oil prices moved higher as the conflict continued and expectations for a diplomatic breakthrough weakened. Brent crude, the international benchmark, was last seen 1.45% higher at $97.68 a barrel. U.S. West Texas Intermediate futures gained 1.65% to trade at $92.99.

<a href=”https://www.reuters.com/markets/europe/european-shares-dip-higher-crude-revives-inflation-worries-novartis-drags-2026-09-08/” target=”_blank” rel=”noopener noreferrer”>European market reaction to higher crude prices</a>

The latest increase in oil prices came as investors assessed both the military escalation and the uncertain outlook for negotiations over Iran’s nuclear program. Energy Secretary Chris Wright said Sunday that a nuclear agreement with Iran might not happen soon.

Speaking on ABC News’ “This Week,” Wright said there may not be a nuclear agreement and suggested that the United States could instead focus on destroying Iran’s ability to develop nuclear weapons. He also said an agreement could potentially await a future administration in Iran, while acknowledging that the outcome remained uncertain.

<a href=”https://www-cdn.abcnews.com/Politics/energy-secretary-nuclear-agreement-iran/story?id=136237933” target=”_blank” rel=”noopener noreferrer”>Chris Wright’s comments on the Iran nuclear agreement</a>

The comments add uncertainty to an already difficult diplomatic picture. President Donald Trump has repeatedly identified preventing Iran from obtaining a nuclear weapon as a central objective of the U.S. campaign, while the administration has also continued to pursue a diplomatic agreement with Tehran.

For financial markets, the combination of military escalation, uncertain negotiations and higher energy prices creates a difficult environment. Oil has become one of the clearest market indicators of how investors are assessing the conflict because any further disruption to energy supplies could affect inflation expectations and economic conditions across major economies.

European stocks mixed on Monday reflected that uncertainty. The CAC 40 and FTSE MIB managed modest gains, while the FTSE 100 and DAX declined. At the same time, energy shares advanced as crude prices rose, while healthcare and financial stocks weakened. The divergent moves left the Stoxx 600 almost unchanged as investors continued to assess the economic and geopolitical consequences of the renewed hostilities.