Global stocks clung to record highs on Monday as strong corporate results, fuelled in part by artificial intelligence optimism, outweighed investor concerns over escalating US-Iran tensions.The US said it struck Iranian military sites at the weekend and Iran’s Revolutionary Guards said on Monday it had targeted a US base in response.Oil prices climbed 5 per cent as Brent crude hit $97.58 (€83.96) a barrel after Tasnim news agency reported that Tehran was halting indirect negotiations with the US over attacks on Lebanon.Irish markets were closed for the bank holiday. LondonThe FTSE 100 closed 0.7 per cent lower amid the tensions in the Middle East, while the FTSE 250 ended down 0.8 per cent, and the Aim All-Share fell 0.2 per cent.On the main index, the oil price gains boosted shares in BP and Shell, up 2.7 per cent and 2.5 per cent respectively.On the FTSE 250, Bluefield Solar Income Fund jumped 16 per cent as it agreed a £548 million cash offer from Drax, which implies an enterprise value of £1.08 billion.EasyJet rose 10 per cent after Minneapolis-based asset manager Castlelake confirmed that it was considering a possible offer for the airline.Castlelake, which holds a 2.1 per cent stake in the FTSE 250-listed company, said if it was to make an offer, it would be at no less than 403.23 pence per share.EuropeEuropean stocks fell as escalating tensions in the Middle East dampened hopes for a near-term resolution to the Iran war, while investors also digested deal-making headlines involving Britain’s EasyJet.The pan-European Stoxx 600 index ended a volatile session down 0.8 per cent to a more than one-week low of 621.24.Most major sectors finished in negative territory. Energy stocks, by contrast, climbed 1.7 per cent.Despite the uncertainty, analysts said corporate earnings and forecasts have held up better than expected this reporting season, with Goldman Sachs raising its 12-month target for the benchmark Stoxx to 660.The luxury sector, which most investors categorise as consumer discretionary, is down more than 18 per cent this year.Elsewhere, the Cac 40 in Paris ended down 0.5 per cent, and the Dax 40 in Frankfurt closed 0.4 per cent lower.New YorkWall Street’s main indexes stayed near record levels on Monday after oil prices spiked on mounting scepticism that a deal to end the three-month-old US-Iran war could be reached soon, while Nvidia’s latest AI push kept losses in check.Heavyweight Nvidia rose 3.9 per cent after unveiling a new chip that puts AI capabilities directly into laptops and desktop computers following a three-year partnership with Microsoft. Microsoft shares added 2.5 per cent and PC makers Dell and HP jumped 9 per cent and 7.3 per cent, respectively.The reaction in semiconductor stocks was mixed. Qualcomm tumbled 6.7 per cent, while PC chipmakers AMD and Intel fell 2.6 per cent and 0.1 per cent, respectively. Micron gained 5.7 per cent to $1,022, topping the $1,000 mark for the first time and extending its scorching rally.Wall Street’s main indexes ended May at record highs, buoyed by hopes of an eventual end to the war and blowout first-quarter earnings. Optimism around AI has also helped boost US equities, but concerns over the economic impact from the hostilities persist.Nine of the 11 main S&P 500 sectors were in the red, with only tech and energy in positive territory.Software stocks rebounded from the heavy selling earlier this year on AI disruption fears. ServiceNow and IBM rose 10.7 per cent and 6 per cent, respectively. The software services index advanced 3.9 per cent after erasing all losses from January-end.Cadence Design Systems added 6.2 per cent after launching an Nvidia-powered AI agent for chip design.Broadcom’s earnings on Wednesday will also be in focus following a strong results forecast last week from Dell signalling strong AI server demand.Among other company movers, Taylor Morrison Home Corp jumped 22 per cent after Berkshire Hathaway agreed to buy the homebuilder for $6.8 billion in cash. (Additional reporting: Reuters/Bloomberg)