Iraqi forces made rapid progress on Monday in their operation against Kurdish fighters in the disputed Kirkuk province, seizing a key military base, an airport and an oil field, commanders said.

Most European stock markets rose Monday on advancing oil prices, but Madrid sank on resurgent worries over the Catalan independence crisis, dealers said.

Frankfurt, London and Paris were each slightly higher approaching the half-way mark.

"Gains seen in Asian markets... helped push risk appetite higher," said analyst Joshua Mahony at online trading firm IG.

"Conflict in the Middle East has seen oil prices spike higher."

Iraqi forces made rapid progress on Monday in their operation against Kurdish fighters in the disputed Kirkuk province, seizing a key military base, an airport and an oil field, commanders said.

Iraqi troops and allied forces launched the operation overnight after tensions between Baghdad and the Kurds spiralled into an armed standoff following last month's referendum on Kurdish independence.

The news spurred oil prices higher because it stoked geopolitical tensions in the crude-rich Middle East. The rising value of oil boosts the share prices, revenues and profits of energy companies.

BP stock won 0.6 percent and Royal Dutch Shell's 'A' share price gained 0.2 percent in London, while French oil giant Total added 0.6 percent in Paris.

- Madrid underperforms -

In Madrid, the stock market shed 0.8 percent after the Spanish government said Catalonia's separatist leader had failed to clarify whether he had declared independence.

"Spanish shares are once again underperforming their European counterparts after Catalan leader Carles Puigdemont opted not to clarify whether or not independence had been declared," added Oanda analyst Craig Erlam.

"Instead, Puigdemont once again called for dialogue with Madrid over the next two months."

Madrid has given Puigdemont until Thursday at 10:00 am (0800 GMT) to make clear his intentions.

In London, medical technology firm Convatec topped the fallers' board -- its share price slumping more than a fifth after the company slashed its revenue growth forecast on chronic supply problems.

EasyJet shares retreated after the British low-cost airline confirmed it was in talks with Air Berlin's administrators for 25 of the collapsed carrier's remaining aircraft.

Lufthansa had agreed a deal last Thursday to take 81 of Air Berlin's 144 aircraft and 3,000 of its 8,500 staff.

EasyJet stock slid almost 0.5 percent in London, while Lufthansa rose nearly 0.7 percent in Frankfurt.

Asian markets extended gains on Monday after a positive lead from Wall Street before the weekend, while the dollar struggled following more weak US inflation figures.

Equities around the world continue to rally on optimism about the global economy and the current corporate earnings season.

- Key figures around 1045 GMT -

London - FTSE 100: UP 0.1 percent at 7,540.04 points

Frankfurt - DAX 30: UP 0.2 percent at 13,012.50

Source:AFP