By Twesha Dikshit

(Reuters) - European shares edged higher on Tuesday, recouping slightly from a slump in the previous session, as investors ‌assessed upbeat corporate earnings, though an escalation in U.S.-Iran tensions kept sentiment in check.

The pan-European STOXX 600 (.STOXX) was up 0.4% at 608.13 points, as of 0818 GMT, after posting its biggest drop in a month on Monday. Major regional bourses were ​also trading higher, except London's FTSE 100 (.FTSE), which was down 0.9%.

A fragile truce between the ​U.S. and Iran was in question after the two nations launched new attacks ⁠as they wrestled for control of the Strait of Hormuz. Oil prices remained firmly ​above $110 a barrel.

Soaring oil prices have weighed on energy-dependent Europe, stoking inflation fears that have ​led to expectations of two to three rate hikes by the European Central Bank this year and dragged shares below pre-war levels.

"Corporate earnings have been relatively supportive. And at the end of the day, ​if companies are still making money then that's going to keep the mood buoyant," said ​Fiona Cincotta, senior market analyst at City Index.

"Even if there are concerns over rising oil prices, they ‌don't ⁠seem to be hitting equity markets as much as one might expect them to."

The food and beverage sub-index (.SX3P) gained 1%.

Anheuser-Busch InBev (ABI.BR) advanced 7% after the Belgian beer maker posted quarterly sales and profits well above forecast.

Shares of Hugo Boss (BOSSn.DE) rose 4.5% after the German fashion ​group reported quarterly operating profit ​above expectations. 

The technology ⁠sub-index (.SX8P) added 1.3%, while the automobile sub-index (.SXAP)  was up nearly 1%. 

Financials remained a drag after HSBC (HSBA.L) shed 0.6% on reporting an unexpected $400-million loss linked to ​a fraud case in Britain that resulted in first-quarter profit below ​estimates.

Shares of UniCredit (CRDI.MI) ⁠rose 3.2% after the Italian lender posted its highest quarterly profit on record and raised full-year forecast. UniCredit has also launched a takeover offer for Commerzbank (CBKG.DE) despite strong German opposition. 

Among other movers, ⁠Rheinmetall (RHMG.DE) was up 2.5%. The German defence group's preliminary results showed ​quarterly revenue below analyst expectations.

Intertek (ITRK.L) soared 7% after Swedish private equity firm EQT AB (EQTAB.ST) raised its bid to buy the ​product-testing company for about 8.93 billion pounds ($12 billion).

Reporting by Twesha Dikshit; Editing by Sherry Jacob-Phillips

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