European shares were muted on Monday, as investors prepared for a week packed with central bank meetings, while oil prices rose with United States-Iran peace talks stalling again.

US President Donald Trump cancelled a trip by his envoys to Pakistan over the weekend for scheduled talks with Iran. Trump has said Iran could telephone if it wants to negotiate an end to their two-month war, but added that Tehran cannot have a nuclear weapon.

Investors, however, took notice of an Axios report that said Iran proposed reopening the Strait of Hormuz, while postponing nuclear negotiations.

The pan-European STOXX 600 was flat at 610.36 points as of 0826 GMT. The index snapped a four-week streak of gains last week, ending 2.5% lower. Meanwhile, major regional bourses moved higher with Germany’s DAX and Spain’s IBEX 35 adding about 0.3% each.

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With technology-led moves aiding US stocks to all-time highs, energy-dependent Europe has lagged with several companies flagging the impact of the Iran war on earnings.

“It is a possibility that we continue to see the (STOXX) 600 index diverge negatively from the technology-heavy US names in the coming days due to the weakening economic outlook in Europe,” said Ipek Ozkardeskaya, senior market analyst at Swissquote Bank.

“The economic implications of the higher energy prices and the lower growth expectations globally, I think, will be a bigger drive for the European stocks than they will be across the Atlantic Ocean,” she added.

Technology and consumer staples shares weighed on the pan-European index, down 0.6% and 0.7%, respectively, on Monday. The United Kingdom’s Intertek dropped 3.3% after the product-testing firm rejected a revised takeover bid of 54 pounds per share from Swedish private equity group EQT AB on Friday.

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Meanwhile, the oil and gas index led the gains on the benchmark, jumping 8% as oil prices rose.

With elevated oil prices adding to expectations that inflation may rise, markets will pay close attention to policy meetings at the European Central Bank and the Bank of England this week for any signs the central banks could move to hike rates.

German consumer sentiment was at a three-year low with higher energy prices and rising inflation weighing on households, a survey showed.

Among other movers, Nordex shares advanced 11.8% after the German onshore wind turbine maker posted core earnings and sales above expectations. French auto parts supplier Forvia dipped 2.8% with the firm to sell its car interiors business to Apollo Funds for 1.82 billion euros ($2.13 billion).