U.S. stock futures edged higher during early European trading as investors welcomed continued momentum in artificial intelligence stocks across Asian markets. The tech sector's recovery has provided a steady tailwind for American equities, with AI-related companies maintaining their recent upward trajectory after months of volatility.

Middle East geopolitical risks receded following Sunday's exchange of attacks between Israel and Iran. Both nations indicated they would only escalate further if the other initiated new strikes first, creating a tentative de-escalation framework. President Trump suggested a peace agreement that would immediately reopen the Strait of Hormuz could materialize within days, boosting market confidence.

Energy markets reflected the improved risk sentiment as Brent crude oil prices slipped at the European open. The commodity's decline tracked the reduced likelihood of supply disruptions from the region. Meanwhile, the dollar weakened against major currencies as investors rotated into risk assets.

European equities mostly advanced in early trade, extending gains from the previous session's rally. The combination of tech sector strength and easing geopolitical tensions has created a more favorable environment for equities heading into the new trading week.