The escalating violence in Iraq drove oil prices to a nine-month high on Friday.
The monetary policy outlook will also be in focus in Britain after Bank of England Governor Mark Carney stunned the markets by saying rates could rise sooner than financial markets expect.
His comments, which put the British central bank out ahead of the world's other major policy guardians on the monetary tightening front, pushed sterling to near five-year highs against the dollar on Friday.
The Bank publishes the minutes of its June policy meeting on Wednesday, which will be closely watched for signs of any further division among its members on rates, and several of its policymakers will be speaking during the week.
The Bank's new Financial Policy Committee, which has the power to rein in an overheating housing market, meets on Tuesday, although the meeting minutes will not be published for a couple of weeks.
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Meanwhile, the ECB's fight against deflation via interest rate cuts and measures aimed at stimulating lending to crisis-hit companies, means few expect further action from it for now.
"The ECB has bought itself some quiet time, maybe for the remainder of this year. It doesn't want to be pushed in to any additional movements before then," economist at Deutsche Bank Gilles Moec said.
There will be few key economic indicators from the euro zone, with the German Zew index for June in focus after better-than-expected industrial output data and rising confidence in the bloc suggesting growth is accelerating in the second quarter.
Bond markets will look to absorb debt supply from Spain, Germany and France after a heavy issuance last week including 9 billion euros of a new 10-year bond from Spain and paper from France, Italy, Germany and Portugal.