July 21 (Reuters) - European shares edged higher on Tuesday as oil prices fell on reports of mediation efforts between the United States and Iran, while investors assessed a fresh batch of corporate earnings.

The pan-European STOXX 600 index rose 0.3 percent to 641.39 points by 0704 GMT.

Oil prices retreated from their highest levels in a month following reports of diplomatic efforts between the United States and Iran, but concerns about energy supply disruptions limited the losses. The Houthi rebels in Yemen, who are allied with Iran, announced a naval blockade of Saudi Arabia on Monday.

This week, attention will focus on the results of major technology companies such as US-based Alphabet, looking for signs of the sustainability of demand related to artificial intelligence and whether the high valuations make sense.

Shares of technology companies rose 1.4 percent.

Shares of mining companies also rose 1.4 percent following a slight increase in copper and gold prices.

However, investors have shifted their focus to quarterly results in Europe to assess the impact of the conflict on companies.

Julius Baer shares fell 2 percent despite the Swiss bank reporting stronger-than-expected net new cash inflows in the first half of the year.