European stocks close mixed as energy gains offset Hormuz concerns

European stock exchanges closed mixed on Tuesday as strong corporate earnings and gains in energy shares offset concerns over disruptions to energy supplies through the Strait of Hormuz.

The pan-European Stoxx Europe 600 edged up 0.01% to 660.51 points, staying near record levels.

Germany’s DAX 40 gained 0.26% to 26,391.42 points, while Italy’s FTSE MIB 30 rose 0.08% to 53,706.21.

Spain's IBEX 35 also climbed 0.2% to end the day at 20,213.60

In contrast, the UK’s FTSE 100 fell 0.17% to 10,844.19 points, and France’s CAC 40 dropped 0.13% to 8,714.94.

Investors monitored diplomatic efforts involving the US and Iran over ending the conflict and reopening the Strait of Hormuz, as continued uncertainty surrounding the key waterway kept oil prices elevated and raised inflation concerns.

The oil and gas sector gained 1.7% as Brent crude briefly reached $90 per barrel, while technology shares advanced 1.1%. Insurance stocks lost 1%.

Among individual stocks, eye care company Alcon climbed 4.7% after raising its full-year earnings forecast, while Danish facility management company ISS gained 4.4% following better-than-expected half-year results.

British engineering company Spirax Group dropped 5.6%, while insurer Legal & General declined 3.1%.

Investors are also awaiting eurozone growth and employment figures, as well as US inflation data due later this week, for further signals on the outlook for monetary policy.

The euro/dollar exchange rate was down 0.06% to 1.1539 as of 1655GMT.