Il Nuovo Postiglione - Stocks mixed, oil edges up after US-Iran clashes

While the US said it had agreed with Iran to halt the attacks and continue talks, the strikes disrupted shipping through the vital Strait of Hormuz over the weekend.

Oil prices, which last week fell to pre-war levels, rose slightly on Monday.

"The impact on oil prices remains relatively contained," said Ipek Ozkardeskaya, senior analyst at Swissquote.

"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," she added.

In Europe, London and Paris retreated, while Frankfurt edged up in midday deals.

Asian stock markets fared better with Tokyo, Hong Kong and Shanghai all closing higher.

Investor confidence remained shaky, however, after last week saw markets whipsaw on growing concerns about a tech bubble fuelled by the AI boom.

Tech firms were again in the spotlight, with South Korean chip makers SK hynix and Samsung extending last week's selling and weighing on Seoul's Kospi.

South Korea said Monday it would invest nearly $1.2 trillion -- equivalent to more than two-thirds of its GDP -- in a new chip-building hub and AI data centres over several years.

Investors are increasingly questioning whether tech valuations have gone too far and when firms will see a return on the trillions of dollars pumped into AI.

The tech rally this year has sent Seoul, Tokyo and Wall Street's three main indexes to record highs, with SK hynix soaring 300 percent in the first six months of the year.

Investors are looking ahead to the release of US jobs data, which could have a bearing on the Federal Reserve's monetary policy plans.

The bank has taken a more hawkish turn amid concerns over surging inflation caused by the Iran war.

"Key data releases like payrolls have grown even more significant since Kevin Warsh has become chair of the Federal Reserve," said Kathleen Brooks, research director at XTB trading gruop.

"He does not like forward guidance, so volatility around key economic releases could increase," she added.

Eyes will also be on the European Central Bank's annual forum held in Portugal this week, which Warsh is expected to attend.

- Key figures around 1100 GMT -

London - FTSE 100: DOWN 0.2 percent at 10,487.41 points

Paris - CAC 40: DOWN 0.3 percent at 8,359.03

Frankfurt - DAX: UP 0.1 percent at 24,684.32

Seoul - Kospi: DOWN 0.2 percent at 8,394.65 (close)

Tokyo - Nikkei 225: UP 0.2 percent at 69,468.11 (close)

Hong Kong - Hang Seng Index: UP 1.6 percent at 23,026.68 (close)

Shanghai - Composite: UP 1.2 percent at 4,073.90 (close)

New York - Dow: DOWN 0.1 percent at 51,876.11 (close)

Brent North Sea Crude: UP 0.6 percent at $73.02 a barrel

West Texas Intermediate: UP 0.9 percent at $69.84 a barrel

Euro/dollar: UP at $1.1406 from $1.1388 on Friday

Pound/dollar: UP at $1.3227 from $1.3200

Dollar/yen: UP at 161.85 yen from 161.75 yen

Euro/pound: DOWN at 86.25 pence from 86.28 pence

E.Spicuzza--INP