European shares inch higher as oil prices ease

European shares edged higher on Tuesday as reports of U.S.-Iran mediation efforts pushed oil prices lower, while investors assessed a fresh batch of corporate earnings.

The pan-European STOXX 600 index .STOXX rose 0.3% to 641.39 points by 0704 GMT.

Oil prices eased from one-month highs after reports of diplomatic efforts between the United States and Iran, though concerns over energy supply disruption cushioned losses. Yemen's Iran-aligned Houthis announced a blockade of Saudi Arabia on Monday. O/R

Earnings from major technology companies such as Alphabet GOOGL.O in the U.S. will be on watch this week for clues on the sustainability of AI-related demand and whether their lofty valuations can be justified.

Technology stocks .SX8P rose 1.4%, led by ASMI ASMI.AS and ASML ASML.AS, which gained 2.5% and 3%, respectively.

Miners .SXPP climbed 1.4% tracking an uptick in copper and gold prices. MET/LGOL/

However, investor focus turned to quarterly earnings in the region to gauge the impact from the conflict on corporates.

Julius Baer BAER.S shares dipped 2% despite the Swiss bank reporting stronger-than-expected first-half net new money inflows.

-Reporting by Tharuniyaa Lakshmi and Purvi Agarwal in Bengaluru; Editing by Nivedita Bhattacharjee/Reuters