European equities recovered from an early dip on Tuesday, with the pan-European STOXX 600 index rising 0.1% to close at 640.61 points.
The modest gain followed a period of volatility at the start of the week, as shifting sentiment in energy markets provided a tailwind for broader risk assets.
The rally was underpinned by a retreat in crude oil prices, driven by reports of renewed mediation efforts between the United States and Iran.
The easing of geopolitical tensions in the Middle East reduced immediate supply disruption fears, allowing energy costs to soften and lifting investor confidence across the continent.
This development follows modest gains in Asian equity markets on Monday, which were similarly supported by falling crude prices and growing optimism ahead of a dense schedule of corporate earnings reports.
The cross-asset reaction suggests that traders are increasingly focused on fundamental corporate performance rather than geopolitical headlines, at least in the short term.