European stock markets were mostly steady on Monday after posting modest gains during the previous week.
Investor sentiment remained cautious as rising crude oil prices and fresh concerns surrounding the artificial intelligence sector weighed on global risk appetite.
The pan-European STOXX 600 gained around 0.2%. Germany’s DAX and Spain’s IBEX 35 were little changed, while France’s CAC 40 and the UK’s FTSE 100 each rose about 0.3%.
Brent Crude Rises Above $105 on Iran Tensions
Energy-related shares received some support as Brent crude climbed above $105 per barrel.
The move followed US President Donald Trump’s rejection of an Iranian proposal to reopen the Strait of Hormuz and bring an end to ongoing hostilities.
Trump argued that Tehran’s proposal reflected weakness in Iran’s strategic position.
Iran later responded by reaffirming that it would not ease its conditions for reopening the key shipping route.
The latest developments reduced hopes for a rapid diplomatic breakthrough and kept concerns over global energy supplies elevated.
Strait of Hormuz Keeps Inflation Risks High
The Strait of Hormuz remains one of the most important shipping routes for global oil supplies.
Continued disruption has raised concerns that crude prices could remain above $100 per barrel for an extended period.
Persistently high energy costs could increase inflationary pressure across the eurozone.
That, in turn, could strengthen the case for further monetary tightening by the European Central Bank if inflation remains difficult to control.
European Tech Stocks Come Under Pressure
Technology shares were among the weaker sectors in European trading.
The decline followed broader weakness in global technology stocks after OpenAI paused some training and evaluation work involving its most advanced artificial intelligence models.
ASML Holding, BE Semiconductor and Infineon each fell more than 1%.
The move added pressure to semiconductor and technology companies that have benefited heavily from expectations of continued rapid growth in artificial intelligence investment.
OpenAI Pause Raises AI Growth Concerns
OpenAI temporarily halted some operations after reporting problems involving autonomous AI agents during testing.
The development raised fresh questions about the speed at which advanced AI systems can be deployed safely and at scale.
Concerns increased further as President Trump prepared to meet Anthropic CEO Dario Amodei to discuss voluntary safeguards for AI development.
Investors are now assessing whether tighter safety measures could slow the pace of artificial intelligence investment.
Semiconductor and Data-Center Stocks Weaken
The uncertainty affected several parts of the European technology ecosystem.
Semiconductor equipment suppliers, software companies and data-center-related businesses all came under pressure.
Markets are reassessing near-term growth expectations as investors consider whether AI-related capital spending could slow.
For now, European stocks remain caught between support from higher energy prices and pressure from technology shares.
Investors will continue to monitor developments in the US-Iran conflict, oil markets and the artificial intelligence sector for the next major market catalyst.
