European shares rose slightly on Tuesday after hitting multi-month lows, as investors assessed conflicting signals about the war in the Middle East.
The pan-European STOXX 600 index rose 0.3 percent to 578.45 points, after hitting its lowest level since November 2025 in the previous session.
The main support came from energy sector stocks, which continued their gains driven by rising oil prices amid supply disruptions.
Risk appetite improved somewhat after US President Donald Trump announced a postponement of an attack on Iranian energy facilities, while speaking of positive talks, although Tehran denied that any negotiations were taking place.
On the other hand, risks remain with the near-total closure of the Strait of Hormuz, through which about 20 percent of global oil trade passes, raising concerns about inflationary pressures in energy-imported Europe.
On the stock market, shares of Germany's SAP fell 2.2 percent, while shares of Spain's Bouygues jumped 16 percent following reports of merger talks with Estée Lauder.
Investors are awaiting the release of preliminary Eurozone Purchasing Managers' Index (PMI) data later today for further clues about the direction of the economy.
