July 13 (Reuters) - European shares were largely flat on Monday as investors held back from making big decisions amid renewed tensions in the Middle East while awaiting the upcoming earnings season for fresh market catalysts.

The pan-European STOXX 600 index settled at 641.01 points, after posting its biggest weekly loss since April on Friday.

Hopes for an imminent end to the war have faded following the latest exchange of attacks between the United States and Iran, and with analysts warning against prematurely predicting a resolution.

Oil prices rose more than 4.8 percent on Monday. Prices had returned to pre-war levels in late June but have since climbed due to the uncertainty surrounding the conflict.

Energy stocks rose 2.2 percent, making them the top performers in the Stoxx 600 index, while defense stocks fell 1.4 percent.

Shares in the travel and leisure sector fell 1.2 percent, making it one of the worst-performing sectors, impacted by losses in airline stocks, with shares of Lufthansa, Ryanair and TUI falling between 1.1 percent and 4.1 percent.

The technology sector also came under pressure, falling 0.6 percent, mirroring declines in similar global companies. Shares of South Korean-listed SK Hynix plunged 15.4 percent after soaring on its Nasdaq debut on Friday.

David Morrison, senior market analyst at Trade Nation, said, "Investors are looking forward to the start of earnings season, and the biggest focus this week will be on ASML... This will be a big early test for the technology sector."

Markets are also dealing with shifting expectations about interest rates, at a time when central banks around the world are trying to assess the inflationary impact of rising oil prices.

Data from the London Stock Exchange Group showed that the European Central Bank is expected to raise interest rates by at least a quarter of a point this year.

As for individual stocks, Plus500 shares plunged 14.9 percent to the bottom of the Stoxx 600 index after the fintech brokerage firm left its annual outlook unchanged.

Shares in KongsbergGruppen fell 6.8 percent after the Norwegian defense and technology company's second-quarter orders came in below expectations, while the latest spin-off impacted its cash flow more than anticipated.

Shares in London-listed Watches of Switzerland Group jumped 4.2 percent. Reuters reported that the company has held talks in recent months about potential bids to delist the luxury watch retailer.

Shares in Dulux paint maker AkzoNobel rose slightly after Nippon Paint offered to buy the company’s decorative paint division for 7.5 billion euros ($8.55 billion).

Vodafone shares rose 5.5 percent, continuing their rally that began on Friday after French billionaire Xavier Niel announced his intention to buy a stake worth about $6 billion in the UAE's E&P telecommunications group.