European stocks hold near flat as rising oil prices lift energy shares: DAX, CAC, FTSE100

European equities traded with little overall direction on Tuesday, as gains across the energy sector helped offset weakness elsewhere in the market.

Oil prices moved sharply higher after U.S. President Donald Trump said he had instructed American representatives to firmly include compensation demands from Iran in future negotiations. The move added another obstacle to efforts to reach an agreement that could allow the Strait of Hormuz to reopen.

Brent crude futures climbed almost 3% towards $90 a barrel as uncertainty persisted over when shipping through the strategically important waterway could return to normal.

Major European indices trade in narrow ranges

European benchmarks remained close to the flatline despite the renewed rise in energy prices.

France’s CAC 40 slipped 0.1%, while the UK’s FTSE 100 gained 0.1% and Germany’s DAX advanced 0.2%.

The relatively muted index moves masked sharper swings among individual companies, particularly in London.

International Workplace Group (LSW:IWG) shares tumbled after the British office-space provider reported a pre-tax loss of $20 million, compared with a pre-tax profit of $12 million in the previous year.

InterContinental Hotels Group (LSE:IHG), the owner of Holiday Inn, also traded lower after growth in room revenue, an important performance measure for the hotel operator, slowed during the second quarter.

Spirax falls despite maintaining full-year guidance

Spirax Group (LSE:SPX) was another notable decliner after releasing improved first-half results.

The thermal energy and fluid technology company maintained its full-year expectations for mid-single-digit organic revenue growth and an improvement in margins, but its shares nevertheless fell sharply.

The reaction added to the mixed tone across European markets, with investors weighing individual corporate updates against a renewed increase in geopolitical and energy-market risks.

BP, Shell and TotalEnergies gain as crude approaches $90

Energy companies were among the strongest performers as higher crude prices improved sentiment towards the sector.

BP Plc (LSE:BP.), Shell (LSE:SHEL) and TotalEnergies (EU:TTE) all moved higher as Brent crude approached $90 a barrel.

The divergence between rising energy shares and weakness in several major companies left European indices broadly subdued, with developments surrounding Iran and the Strait of Hormuz remaining an important near-term driver for both oil prices and market sentiment.