European stocks edged higher on Tuesday as investors digested a series of upbeat corporate earnings reports, which helped counterbalance ongoing geopolitical tensions in the Middle East. However, elevated energy prices and concerns over the European Central Bank's interest rate outlook continued to weigh on market sentiment.

At the close, the pan-European STOXX 600 index rose by approximately 0.5%. Major national indices generally advanced, with Germany's DAX index leading the gains, climbing around 1.5%. France's CAC 40 index followed with a modest increase. Shares of UniCredit surged more than 3% after the Italian bank reported record first-quarter profits and raised its full-year forecast.

In contrast to the positive performance in continental markets, the UK's FTSE 100 index bucked the trend and declined. The main pressure came from heavyweight HSBC Holdings, whose shares fell over 5% after the bank reported weaker-than-expected earnings due to an unexpected $400 million loss provision linked to a UK fraud case, significantly dragging down the broader UK market.

On the macroeconomic front, although tensions between the U.S. and Iran concerning the Strait of Hormuz showed no signs of easing, Brent crude prices retreated from their highs to around $110 per barrel, temporarily alleviating energy-driven inflation pressures on equities. Strong earnings results became the market's focal point, with Anheuser-Busch InBev rising nearly 7% after reporting better-than-expected performance. Analysts noted that as long as corporate profits remain robust, market sentiment is likely to stay buoyant, even as macroeconomic worries stemming from high oil prices persist.