The Stockholm Stock Exchange is seeing significant losses during Monday's session. Swedish indices are tracking U.S. markets, which traded sharply lower on Friday.

Over the weekend, reports emerged that Iran and Israel have resumed direct hostilities.

As of 09:14 CET, the OMXS30 index was down 1.43 percent at 3,071.93. Shares worth approximately SEK 1.3 billion had changed hands on the Stockholm bourse.

Energy was the best-performing major industrial sector, posting a gain of 1.63 percent. At the other end of the spectrum, technology lagged the market, falling 2.16 percent.

Among the blue-chip stocks in the OMXS30 index, Tele 2 B rose 0.7 percent while Telia gained 0.4 percent. Hexagon B saw the weakest performance, dropping 3.2 percent, while H&M B fell 2.5 percent.

Canada is in talks to supplement its future fighter jet fleet with Saab's Gripen E, alongside the planned F-35 aircraft from Lockheed Martin, according to CBC, citing industry and government sources. The reports suggest a potential purchase of 72 Gripen jets to be built in Canada. If realized, the Gripen deal could create up to 9,000 jobs and become the largest defense industrial project in Canadian history. Saab shares are down 0.3 percent.

Installation firm Bravida has been awarded a contract for Green Mountain's data center in Norway, with an order value of NOK 4.5 billion. The multi-year assignment covers project management, design, and all technical installations. Bravida rose 3.6 percent.

Communications service provider Sinch has appointed CFO Jonas Dahlberg as acting CEO with immediate effect. The appointment is part of the company's ongoing succession process following outgoing CEO Laurinda Pang's previous announcement of her departure. Sinch is down 3 percent.

Blood analysis company Cellavision has appointed Steve Ferguson as its new CEO with immediate effect. He succeeds Simon Østergaard, who will remain during a transition period. Ferguson has over 25 years of experience in the biotech sector, most recently serving as CEO of Medix Biochemica. He has also previously worked at Thermo Fisher Scientific and Lundbeck. Cellavision is down 0.3 percent.

Software company 4C Strategies is conducting a rights issue of SEK 54 million before transaction costs. The issue is fully guaranteed. The stock is up 5.6 percent.

In the analyst flow, the following was noted:

Nordea resumes coverage of H&M with a sell rating and a target price of SEK 130. H&M is down 2.4 percent.

Handelsbanken raises Addlife to buy (from hold), with a target price of SEK 192 (162). Addlife is up 2.2 percent.

Oddo upgrades EQT to outperform (from neutral), with a target price of SEK 355. EQT is down 2 percent.

SB1 Markets initiates coverage of Alleima with a buy rating and a target price of SEK 110. The stock is up 0.3 percent.