European shares rise as softer Iran sanctions lift defence stocks

European shares edged higher on Tuesday as investors welcomed a softer-than-expected U.S. sanctions package against Iran, with defence stocks boosting sentiment. The pan-European STOXX 600 rose 0.3%. Iran vowed retaliation for the expanded sanctions but expressed confidence major trading partners would resist Washington's pressure. Oil prices fell further on little immediate supply threat, while U.S. Treasury yields eased on potential debt buybacks. Defence stocks led gains, up 1.2%, after Melrose Industries jumped 8.8%. Luxury stocks fell 1.1%, and investors awaited Nvidia's results and Fed Chair Kevin Warsh's Jackson Hole speech.