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 United States.
The US-Iran conflict has effectively halted traffic through the strategic Strait of Hormuz, sending crude oil prices sharply higher and fuelling concerns over inflation and the outlook for interest rates.
The pan European Stoxx 600 gained 0.54%. The UK'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, the Czech Republic, Finland, Ireland, the Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden ended higher.
Belgium, Denmark, Greece, Iceland and Turkey 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 Systèmes, and STMicroelectronics closed weak.
