Source: Sharecast
The pan-regional Stoxx 600 index was down 0.03% at 1209 BST with major markets hovering around the flatline.
Tensions flared again when Iran fired at an oil tanker in the Strait of Hormuz, leading to US strikes on Iranian installations followed by Tehran launching drone and missile attacks against Bahrain and Kuwait on Sunday. Both sides are meant to be at the start of a 60-day negotiation period towards a ceasefire.
“Although traffic through the Strait of Hormuz has been affected since the attacks began last week, the impact on oil prices remains relatively contained,” said Swissquote analyst Ipek Ozkardeskaya.
“Last week's news that some key markets have even turned oversupplied thanks to the release of strategic reserves and oil tankers quietly making their way out of Hormuz has certainly helped investors react more moderately to the latest escalation than they would have just a few weeks ago.”
Oil prices made moderate gains as a result, with Brent crude up 0.57% to $72 a barrel, while US crude sat at $69.84.
On the economics front, eurozone sentiment picked up in June, official research showed on Monday, although employment intentions remained depressed.
According to the European Commission, the economic sentiment indicator rose by 1.3 points to 95.0, comfortably beating consensus for 94.3. The indicator also rose by the same amount to 95.1 across the wider bloc.
The upturn was seen by all sectors bar construction, while consumer confidence rebounded 1.2 points following a sharp decline in March-April when hostilities in the Middle East were at their peak.
In equity news, shares in Bridgepoint surged as the UK buyout group announced a $1.4bn deal to buy the real estate business of US investment firm Kayne Anderson.
Reporting by Frank Prenesti for Sharecast.com