European shares climb on Iran sanctions relief, defence gains

Aug 25 (Reuters) - European ‌shares edged ​higher ​on Tuesday as investors took comfort in a softer-than-feared U.S. sanctions package ‌against Iran, while gains in defence stocks ⁠boosted sentiment.

The pan-European STOXX 600 was up 0.3% ‌at 656.14, as of ‌0718 GMT, with defence stocks leading sectoral gains, up 1%.

On Monday, the Trump administration ​warned countries to cut their business ties with Iran or face secondary sanctions as ⁠part of what it billed as an "economic D-Day," though the ​Treasury Department stopped short of imposing any penalties.

Oil prices fell further as traders ​saw little immediate threat ‌to global crude supplies from the latest U.S. measures. [O/R]

Iran promised to ⁠retaliate against the expanded U.S. sanctions and said it was confident major trading partners would resist ⁠Washington's pressure campaign.

Meanwhile, U.S. Treasury yields eased from recent ​peaks after reports the Treasury may use its cash reserves to fund larger debt buybacks, which could reduce ‌the need for additional sales of short-term bills.

The tech sector rose ‌0.3%, with investors awaiting Nvidia's results on ⁠Wednesday amid concerns the ‌chipmaker may struggle ​to meet lofty expectations.

(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Rashmi ‌Aich)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Oil market bearish for crude, bullish for products, says TotalEnergies CEO
• Russia's Afipsky oil refinery on fire after drone attack, two dead, governor says
• Shein's up to $1.8 billion Hong Kong IPO order book covered, sources say