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European stocks opened lower on Monday, after sharp losses last week, as escalating military confrontation between the United States and Iran pushed Tehran to close the Strait of Hormuz, raising investor concerns.

The pan-European STOXX 600 fell 0.3% to 639.29 points by 07:02 GMT, after recording its biggest weekly loss since late April on Friday.

Dollar rises amid renewed attacks in the Middle East and closure of the Strait of Hormuz

The latest escalation in the conflict has raised questions about the viability of the agreement reached between the US and Iran last month, which aimed to resume navigation through the Strait of Hormuz and set the stage for further talks, according to Reuters.

Oil prices rose more than 4%, boosting energy sector stocks on the index by 1.6%.

Investors are also anticipating the earnings season, looking for signs of whether corporate results can support stocks, especially in the technology sector, which faces the risk of overvaluation.

The technology sector came under pressure on Monday, falling 1.2% tracking losses in Asian tech stocks, following the initial public offering of SK Hynix on Nasdaq on Friday. The stock of the company, which is the world's largest producer of AI memory chips, jumped 12.8%.

Shares of AkzoNobel, the maker of Dulux paint, rose 3% after Nippon Paint offered to buy the company's decorative paints division for 7.5 billion euros ($8.55 billion).

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