European stock markets closed higher on Monday despite rising Middle East tensions and weakening economic sentiment data.

Energy and mining shares led gains, helping lift the benchmark Stoxx Europe 600 index by 0.94% to 580.73 points after early losses.

Germany’s DAX 40 rose 1.18% to 22,562.88 points, France’s CAC 40 gained 0.92% to 7,772.45, Italy’s FTSE MIB 30 added 1.02% to 43,823.24, and Britain’s FTSE 100 climbed 1.61% to 10,127.96, supported by commodity stocks.

The euro/US dollar exchange rate was down 0.41% at 1.1463 as of 1810 GMT.

European Commission data showed eurozone economic sentiment fell 1.6 points month over month to 96.6 in March as higher energy costs weighed on business and consumer expectations.

In Germany, the Ifo Institute said companies planning price increases rose to 25.3 points in March, the highest since March 2023, while annual inflation accelerated to 2.7% from 1.9% in February.

Comments by US President Donald Trump suggesting Iran’s main oil export hub on Kharg Island could be targeted, along with Houthi missile attacks on Israel, added to market anxiety.

UBS analysts said markets may rebound quickly if signals emerge that the Strait of Hormuz will reopen, while CMC Markets chief market analyst Andreas Lipkow warned that higher energy costs could keep inflationary pressures elevated.

Among individual stocks, TotalEnergies rose more than 3%, Ferrari gained more than 4%, and Rheinmetall added 2%.