March 31 (Reuters) - European stocks inched up on Tuesday as investors drew some comfort from hopes of de-escalation in the Middle East war, but the benchmark index was still set for its sharpest monthly decline since 2020 amid supply-chain disruptions.
The pan-European STOXX 600 index was up 0.2% at 581.92 points by 0708 GMT. The benchmark index, down 8.2% in March, is on track to break an eight-month streak of gains and log its first quarterly decline in five.
Financial services stocks gained 0.8%
and led sectors higher.
Investor sentiment was lifted on Tuesday after The Wall Street Journal reported that U.S. President Donald Trump told aides he is willing to end the military campaign against Iran even if the Strait of Hormuz remains largely closed.
European equities entered March near record highs but fell sharply by month-end as the U.S.-Israel conflict with Iran disrupted oil supplies, lifting oil prices and weighing on growth and inflation expectations.
Investors await the eurozone's flash consumer prices reading later in the day, the first of its kind since the inception of the Gulf conflict, to gauge the war's impact on the region's economies.
Among movers, Unilever added 0.7% after the conglomerate said it was in advanced talks to combine its food business with spice maker McCormick, which would land the consumer giant roughly $15.7 billion in cash.
(Reporting by Avinash P in Bengaluru; Editing by Rashmi Aich)
