European equities opened a high-stakes week on the defensive as rising crude prices, stalled Middle East peace talks and unexpected AI-sector headwinds weighed on sentiment. The STOXX 600 and Germany’s DAX were flat, while France’s CAC 40 slipped 0.2% and London’s FTSE 100 gained 0.5%. AI-linked shares fell after the leaders of OpenAI and Anthropic called for a temporary slowdown in advanced AI model development, with BE Semicondcutor down 5.2%, ASML 4.4% and STMicroelectronics 3.4%. Brent crude rose 3% to about $112 a barrel, extending a rally of nearly 40% since early July amid attacks on Saudi infrastructure, Houthi advances near Red Sea routes and the postponement of Oman talks on reopening the Strait of Hormuz. Markets are also preparing for major monetary-policy decisions after the European Central Bank raised rates to 2.50% last week. Money markets price an 86% probability of a 25-basis-point Federal Reserve increase at the Sept. 15-16 FOMC meeting, while traders also see high odds of another quarter-point increase in December. The Bank of Japan is widely expected to raise rates on Sept. 18, while the Bank of England faces its own inflation challenges.