Europe Stocks Slide as Middle East Tensions Fuel Oil Price Surge

European stocks declined on Tuesday as tensions in the Middle East escalated, pushing up oil prices and bond yields.

The pan-European STOXX 600 index fell 0.2% to 654.81 by 7:03 GMT after Iran announced it would adopt a 'fully offensive' military posture due to stalled peace talks with the US.

Energy shares led the gains, rising 0.6%, as Brent crude prices climbed 0.6% to $91.41 per barrel.

In contrast, basic resources declined 1% as gold prices fell in response to higher Treasury yields ahead of the release of the Federal Reserve's July policy meeting minutes.