Europe open: Shares in cautious start as US-Iran agree to stand down

(Sharecast News) - Share prices in Europe made a cautious start to the week after the US and Iran agreed to stand down following tit-for tat missile strikes over the weekend.

The pan-regional Stoxx 600 index edged ahead by 0.03% at 0829 BST.

Tensions flared again when Iran fired at an oil tanker in the Strait of Hormuz, leading to US strikes on Iranian installations followed by Tehran launching drone and missile attacks against Bahrain and Kuwait on Sunday. Both sides are meant to be at the start of a 60-day negotiation period towards a ceasefire.

"Although traffic through the Strait of Hormuz has been affected since the attacks began last week, the impact on oil prices remains relatively contained," said Swissquote analyst Ipek Ozkardeskaya.

"Last week's 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 than they would have just a few weeks ago."

Oil prices made moderate gains as a result, with Brent crude up 0.43% to $72 a barrel, while US crude sat at $69.91.

In equity news, shares in Bridgepoint surged as the UK buyout group announced a $1.4bn deal to buy the real estate business of US investment firm Kayne Anderson.

Reporting by Frank Prenesti for Sharecast.com