July 21 (Reuters) - European shares rose on Tuesday as gains in the technology and mining sectors diverted attention from fresh attacks in the Middle East that pushed oil prices higher, while investors considered a new round of earnings reports.

Brent crude jumped more than 2.5 percent after U.S. forces bombed targets in southern and western Iran overnight.

The pan-European STOXX 600 index rose 0.6 percent to close at 643.19 points, ending a two-day losing streak.

Technology stocks rose 2.1 percent, the largest gain in the index, with shares of ASMI and ASML rising 5.4 percent and 4.7 percent respectively.

The earnings of major US technology companies, such as Alphabet, the parent company of Google, will be in focus this week for clues about the sustainability of AI-related demand and whether their overvaluation can be justified.

“We have seen these swings in sentiment… which highlight the kind of tension surrounding the technology sector, particularly artificial intelligence and the chip trade,” said Fiona Cincotta, senior market analyst at City Index.

She added, "If we see another strong season, that could actually be a catalyst for a new surge in technology stocks."

Markets will also be watching for earnings reports from major banks such as Santander and BNP Paribas later this week.

The mining sector rose 1.7 percent, tracking higher copper and gold prices, although shares of Swedish mining company Boliden fell 5.7 percent after it reported weaker-than-expected adjusted quarterly operating profit.

The media sector was the worst performing, declining by 1.4 percent.

The focus will be on statements from European Central Bank policymakers during Thursday's monetary policy meeting, at which interest rates are expected to remain unchanged.

However, data from the London Stock Exchange Group indicates that market participants expect borrowing costs to rise at least once by 25 basis points by the end of 2026.

In Britain, new Prime Minister Andy Burnham appointed former Defense Minister John Healey as Chancellor of the Exchequer, just weeks after Healey resigned from the previous government and criticized the Treasury's shortcomings in defense spending.