REUTERSLondon: European stock markets started August on a stronger footing on Monday as hopes for renewed diplomacy between the United States and Iran helped drive oil prices sharply lower, boosting investor sentiment across the region. Decline in oil pricesThe decline in oil prices weighed on energy stocks, which fell 1%, but provided a boost to sectors that benefit from lower fuel costs. European equities had already posted a positive performance in July, with the STOXX 600 gaining more than 1% despite concerns over the economic impact of the US-Iran conflict. Higher energy pricesHigher energy prices have been a particular concern for Europe, given the region's reliance on imported oil and gas. Investors will continue to monitor developments in the Middle East closely, with market sentiment likely to remain heavily influenced by diplomatic progress and its potential impact on energy markets.