European equities edged higher as falling oil prices and renewed diplomatic signals in the Middle East improved risk sentiment. The STOXX 600 rose 0.15%, extending gains for a second session after a 1% jump in the previous session, its strongest one-day advance since July 2. Germany’s DAX, London’s FTSE 100 and Spain’s IBEX 35 were flat. Brent crude prices continued lower after a 3% decline in the previous session, easing pressure on corporate profit margins and energy risk premiums. Sentiment also improved after U.S. President Donald Trump said he was open to direct talks with Iranian President Masoud Pezeshkian, who is due in New York this week for the UN General Assembly. Reports that maritime shippers were using alternative pipeline and ship-to-ship routes from the Persian Gulf further reduced immediate energy-supply concerns linked to the seven-month conflict. France remained a counterpoint to the broader market gains. Credit default swaps (insurance contracts against sovereign default) on French government debt rose Monday to their highest level since March 2020, Reuters reported, reflecting concerns about the country’s long-term fiscal deficit and political gridlock. French sovereign bonds, known as OATs, have consequently ranked among the weakest-performing fixed-income assets in major developed economies this year. Investors are also assessing a monetary-policy backdrop shaped by the Federal Reserve’s rate hike last week and European Central Bank President Christine Lagarde’s continued data-dependent stance. Markets are watching whether diplomatic developments can produce a lasting easing in energy markets or whether fiscal strains in Europe will pressure equity valuations into the final quarter.