European shares rise on Iran sanctions relief

European shares edged higher on Tuesday as investors took comfort in a softer-than-feared U.S. sanctions package against Iran. The pan-European STOXX 600 rose 0.3%, with defence stocks leading sectoral gains, up 1%. On Monday, the Trump administration warned countries to cut business ties with Iran or face secondary sanctions, billing it as an 'economic D-Day,' though the Treasury Department stopped short of imposing any penalties. Petroleum prices fell further as traders saw little immediate threat to global crude supplies. Iran promised to retaliate against the expanded U.S. sanctions and expressed confidence that major trading partners would resist Washington's pressure campaign. U.S. Treasury yields eased from recent peaks on reports the Treasury may use cash reserves to fund larger debt buybacks. The tech sector rose 0.3% ahead of Nvidia's results on Wednesday. Defence stocks were boosted by Melrose Industries jumping 8.8% after it said it aims to resume full production at its Garden Grove facility by September 28 and expects to pay up to $100 million to settle damage claims related to a May incident. Germany's economy grew 0.3% in Q2, above preliminary estimates. Luxury and automobile stocks were the worst performers, down 1.1% and 0.8% respectively.