European equity markets closed lower on Monday, with the Belgian Bel20 index shedding 0.20% as investor sentiment remained subdued.
The modest decline reflects a cautious stance among traders ahead of the European Central Bank's policy meeting scheduled for Thursday.
Iran has previously warned that oil tankers must use approved routes or face forceful responses, a stance that continues to weigh on shipping risk assessments.
Broader European indices also traded in a narrow range, mirroring the tentative mood that characterized the close of the previous week.
Crude oil prices stabilized during the session, holding firm after a period of volatility driven by geopolitical concerns.
The energy market pause follows reports that mediators from Qatar and Pakistan have observed progress in diplomatic efforts, though tensions around the Strait of Hormuz persist.
Iran has previously warned that oil tankers must use approved routes or face forceful responses, a stance that continues to weigh on shipping risk assessments.