European oil stocks rise after renewed U.S.-Iran strikes

Shares in European oil producers rose after the U.S. and Iran exchanged additional strikes, with Tehran saying it had again closed the Strait of Hormuz.

The renewed attacks are fuelling doubts on the future of an interim U.S.-Iran agreement signed last month, aiming to reopen the vital waterway and end the war.

Metzler says the escalating tension between the two countries is likely to drive oil prices higher this week.

"Even though it still left oil prices well beneath their peak earlier in the year, it still revived fears about more persistent inflation," Deutsche Bank says.

Oil prices jumped after the recent developments, with Brent futures LCOc1 up 3.7% to $78.82 a barrel by 0706 GMT and U.S. West Texas Intermediate crude CLc1 rising 3.8% to $74.1.

A basket of European energy stocks .SXEP was up 1.4%, among the best performers on the wider STOXX 600 .STOXX index.

Among single stocks, Galp Energia GALP.LS, OMV OMVV.VI and Repsol REP.MC were up between 1% and 1.6%.

TotalEnergies TTEF.PA, Maurel & Prom MAUP.PA, Eni ENI.MI and Equinor rose between 2.4% and 2.7%.

Shell PLC SHEL.L and BP BP.L were up 1.8% and 2.7%, respectively.