European stocks cautious as US-Iran talks stall; oil jumps above $107

European stock markets traded cautiously on Tuesday amid stalled US-Iran negotiations, while oil prices surged with Brent crude above $107 per barrel. Rising energy costs fueled inflation concerns, pressuring government bonds and pushing the US 10-year Treasury yield to its highest level in nearly two decades. Asian and Wall Street declines set a weak tone, with the FTSE Mib, CAC 40, and DAX 30 showing only modest gains. The lack of progress on reopening the Strait of Hormuz, critical for global oil transport, drove energy price increases, while investors also weighed potential Federal Reserve monetary tightening and ECB President Christine Lagarde's gradual approach to inflation. In Milan, technology stocks led gains including Technoprobe, Stmicroelectronics, and Prysmian, while utilities and oil companies lagged despite rising energy prices. The euro fell near three-month lows below $1.14, and Australia's central bank raised its benchmark rate to a 15-year high.