India, Sept. 7 -- European stocks were subdued on Monday as U.S. attacks on Iranian tankers and Tehran's threat of a new restricted zone outside the Strait of Hormuz raised concerns about prolonged disruptions to energy flows through the waterway.

Rising oil prices fueled expectations that the European Central Bank will hike interest rates later this week.

The euro held steady against the dollar after a far-right Alternative for Germany party surged to a resounding victory in a regional election and a measure of Eurozone investor confidence strengthened much more than expected in September.

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